Uralvagonzavod complains about Severstal’s prices

Uralvagonzavod Scientific & Production Association placed a complaint with Deputy Head of Russian Federation Government Igor Sechin regarding Severstal raising its product prices, RBC daily reports. Uralvagonzavod explains it is unhappy with the sky-high prices set by the metallurgical enterprise.

At the beginning of the month, Uralvagonzavod and Severstal signed an agreement valid for thirty days, which meant the former agreed to a nearly 30% price increase. In return, Severstal promised to raise their delivery volumes by 50%. Now Uralvagonzavod claims it only agreed to the new price terms because no boiler plates were actually delivered to the plant by Severstal in April or May, so Uralvagonzavod ran a high risk of production stoppage, the newspaper explains.

Igor Sechin’s administration confirmed getting Uralvagonzavod’s letter of complaint and informed the company that requests to look into the situation had already been sent to respective ministries and departments.

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