FAS INITIATED CASE AGAINST THE LARGEST CEMENT PRODUCER IN THE SOUTHERN FEDERAL DISTRICT AND THE NORTH CAUCASUS FEDERAL DISTRICT

The growth rates of cement prices of the companies Verkhnebakan Cement Plant and Novoroscement, belonging to the Gazmetallproekt group of entities, in the first half of 2023 exceeded the growth rates of prices of the same period last year

The relevant information was received by FAS Russia as part of the monitoring of prices for construction materials. The authority found that this market is highly concentrated and is characterized by the presence of barriers, and therefore access to it requires significant time and financial costs. At the same time, Gazmetallproekt group of persons is the largest cement producer in the Southern and North Caucasus Federal Districts and occupies a dominant position in this market.

The analysis of the companies' business activity data showed that the prices set by them in the first half of 2023 exceeded the amount of necessary expenses and profits for production and sale. The authority identified signs of violation of antimonopoly legislation* in the actions of a group of persons composed of Verkhnebakan Cement Plant JSC and Novoroscement JSC and initiated a case.

In case of finding fault, a group of persons faces a turnover fine in accordance with the Administrative Code of the Russian Federation.

* On grounds of violation of Paragraph 1 of Part 1 of Article 10 of the Law on Protection of Competition