UPDATE 1-Russia anti-trust body demands Mechel cut coal price

Thu Aug 14, 2008 12:41pm BST
 
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(Adds long-term contracts, Raspadskaya, Evraz Group)

MOSCOW, Aug 14 (Reuters) - Russian miner Mechel (MTL.N) should significantly cut the price at which it sells coking coal to domestic steel makers and in return will receive a "less than average" fine, the head of Russia's anti-trust body said on Thursday.

Igor Artemyev, head of the Federal Anti-Monopoly Service, was speaking to reporters after his agency found Mechel guilty of abusing its dominant market position in coking coal.

He did not specify the level of price reduction demanded by his agency.

Artemyev said Mechel must also switch its coking coal supplies to long-term contracts from 2009.

The anti-monopoly service said it would rule within 10 to 20 days on the fate of coal miner Raspadskaya (RASP.MM) and a trading unit of steel maker Evraz Group (HK1q.L), which are also under investigation for alleged abuses of their market position. (Reporting by Polina Devitt, writing by Robin Paxton; Editing by Rory Channing)

 

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