05-06-2019 | 16:08

FAS monitors the environment on the railway wheel market due to demand – supply misbalance in Russia since 2017


According to the information in mass media, in 2019 “Vyksa Steel Works” JSC (the largest manufacturer of whole-rolled wheels in Russia) breaks long-term contracts with the purpose to re-conclude the earlier contracts at the current spot prices.


Under Russian law, such practice is unacceptable of consumers observe all contract conditions and can contain elements of abusing dominance through unreasonable refusals, avoiding contracts and imposing disadvantageous contract conditions.


If such practice is applied by the second market participant – “EVRAZ – Nizhny Tagil Integrated Iron-and-Steel Works” JSC, the conduct of “Vyksa Steel Works” JSC and “EVRAZ – Nizhny Tagil Integrated Iron-and-Steel Works” JSC can contain signs of concerted actions, which also is a violation of the antimonopoly law.


The growth of whole-rolled wheels prices in 2017-2018 is in the core of an antimonopoly investigation against “Vyksa Steel Works” JSC and “EVRAZ – Nizhny Tagil Integrated Iron-and-Steel Works” JSC opened in October 2018.


FAS is analyzing the impact of the actions undertaken by Russian manufacturers and the shortage factor in the growth of prices in the market. At the same time, according to the information available to FAS, the shortage on whole-rolled wheels markets was caused by various objective factors, including operation cycles on the market i of the rolling stock spare parts as well as the dynamics on the second-hand wheels market.


FAS will carry out market analysis in the course of the case investigation. Head of FAS Industry Control Department, Nelli Galimkhanova points out:


Bt itself, a growth of prices for any products of a dominant entity cannot be classified as monopoly pricing if it is caused by objective factors that do not depend on the company with monopolistic position. At the same time, under the Russian law the valid contracts should be executed: unilateral unreasonable rupture of valid contracts with the purpose to review prices is unacceptable”.

Site Map

News & Events Press Releases Media Releases Image Library About the FAS Russia What We Do General Information Mission, Goals, Values Priority Setting Institutional Memory Stakeholders Engagement Center for Education and Methodics Our History Our Structure Powers of Head and Deputy Heads Our Ratings GCR Using our website International Cooperation Treaties & Agreements International Working Groups Working Group on Research of Competition Issues in the Market of International Telecommunications (Roaming) Meetings Working Group for Studying Competition Problems in the Pharmaceutical Sector Concept Note Meetings OECD Competition Committee OECD meetings 2013 OECD meetings 2014 OECD meetings 2015 OECD meetings 2016 OECD meetings 2017 OECD meetings 2018 FAS Annual Reports OECD-GVH RCC RCC Newsletter ICAP Council on Advertising Headquarters for Joint Investigations UNCTAD 13th session IGE UNCTAD Resolution Russian contributions 14th session IGE UNCTAD Resolution Russian contributions 15th session IGE UNCTAD 16th session IGE UNCTAD 17th session IGE UNCTAD EEU Model Law on Competition ICN BRICS WG (Markets of Social Importance) EU APEC Competition Policy and Law Group Annual meetings Projects ERRA Full Members Organizational Structure Archive Working Group on Investigating Issues on Pricing in the Oil and Oil Product Markets and Methods of their Functioning Meetings Document Library Legislation Reports & Analytics Cases & decisions Contacts Give feedback Contact us Links Authorities Worldwide