Russian antitrust warns RUSAL, MMK against using dominant position

MOSCOW, Dec 28 (PRIME) -- Russia’s Federal Antimonopoly Service has warned aluminum giant UC RUSAL and Magnitogorsk Iron and Steel Works (MMK) against using dominant position on the pitch market, the service said in a statement Wednesday.

The companies were unable to agree on the price of the product, and MMK complained to the service for enforcing unprofitable clauses of a contract. The service confirmed signs of violation by RUSAL, but also uncovered signs of violations by MMK, as it also imposed its price and even suspended production of pitch while RUSAL had to switch to imports of the raw material.

“Such behavior of a monopolist and a single buyer of the product leads to bad consequences for ultimate consumers…The claimant and defendant both infringed on interests of each other, which lead to a threat to production of aluminum as a whole due to their position at the market,” the service said citing Deputy Director Andrei Tsarikovsky.

RUSAL is the only buyer of melted coal-tar pitch of B1 and V types, which is a raw material for production of aluminum, while MMK is dominant at the pitch market as a producer. “The companies received a warning, but measures of the antimonopoly regulation will be introduced if the situation does not change,” Tsarikovsky added.

End