Russia's Competition Watchdog Accuses NLMK of Overcharging Russian Buyers

Russia’s competition watchdog has accused the NLMK group, one of the largest steel producers in Russia, of overcharging its domestic customers by 100%. The price of electric steel for the Russian market was twice as mush as for foreign buyers.

“The Commission of the Federal Antimonopoly Service has not found economic or technological factors which would justify the difference in prices and concluded that such actions are contrary to the requirements of paragraph 1 of Part 1 of Article 10 of the Federal Law ‘On Protection of Competition’”, the antimonopoly service said in a statement.

While the prices of the electric steel on the world market have been falling, in Russia they remained relatively stable, one of the reasons being that OJSC NLMK and its affiliated company VIZ-Stal LLC are the only producers of electrical anisotropy (transformer) steel in Russia.