The Federal Antimonopoly Service looked into the country’s metallurgical market problems and took legal action against some of Mechel enterprises. These are: Mechel Trading Company, Yuzhniy Kuzbass, and Yakutugol, all of which can be charged with violation of competition protection law through abuse of their dominating position on the market.

The Service is worried metallurgical coal and coal concentrate might become more expensive on the Russian market, so queries were sent to all the major producers in order to find out how much coal they were going to supply on the domestic market and how the prices would be shaped in the year 2008.

Mechel Trading Company and Yuzhniy Kuzbass are believed to violate the antimonopoly legislation by discontinuing their supplies of coal concentrate to Novolipetsk Iron & Steel Works (NLMK) for no good economic or technological reason.

Mechel Trading Company and Yakutugol are believed to violate the antimonopoly legislation by refusing to sign a contract for the delivery of coal concentrate to Novolipetsk Iron & Steel Works (NLMK) for no good economic or technological reason, the spokesperson for the Service reports.

What is more, Mechel Trading Company is reported to set and stick to monopolistic coal concentrate prices, which violates the existing antimonopoly legislation as well.