Director of the Russian Federal Antimonopoly Service Igor Artemyev
Photo: Sergey Mikheev
| Other Photos |
 |
|
 |
Mechel Gets Off Lightly
Head of the Federal Antimonopoly Service Igor Artemyev kept his promise to punish Mechel lightly. Igor Zyuzin’s company will pay a fine of just 5 percent of its turnover, or 790 million rubles, and be required to lower its prices by 15 percent. The company could have been forced to pay 15 percent of the turnover on its coking coal trade and lower its prices 30 percent. Artemyev announced the fine after a meeting with Prime Minister Vladimir Putin, who blasted the company for high prices and tax evasion, starting it troubles.
Investors realized the company’s luck. Its ADR had risen 4 percent on a falling NYSE at press time.
Artemyev explained that the company had worked with state bodies to earn the easy punishment. The effect of the prime minister’s criticism of the company is expected to be felt throughout the coal industry. Evraz Group and Raspadskaya mines are also under investigation by the FAS and Artemyev said yesterday that “analogical measures” will be applied to them. Observers point out that, if they are forced to lower their prices by 15 percent, Mechel’s will remain the most expensive coal on the market.
Any measures taken will have a greater impact on Raspadskaya mines than on Evraz, Raspadskaya, unlike Evraz and Mechel, produces nothing else and thus has nowhere else to make up its losses. It also has an insignificant presence on the domestic market.
www.kommersant.com
All the Article in Russian as of Aug. 20, 2008
|
|
|
