FAS: COURT UPHELD DECISION, REMEDY AND FINE OF THE SERVICE IN THE AMOUNT OF 8.7 BILLION RUBLES AGAINST SEVERSTAL PJSC

Previously, the company was found guilty of setting and maintaining a monopoly high price for hot-rolled flat products in the domestic market in 2021

The Moscow City Arbitration Court recognized the decision, remedy and fine of FAS Russia in relation to Severstal as lawful. It should be reminded that in February 2022, the Authority recognized the organization as violated the antimonopoly legislation.

The company, which occupies a dominant position together with NLMK PJSC and MMK PJSC, set and maintained a monopolistically high price for hot-rolled flat products in the domestic market. The increase in prices for hot rolled products occurred at a faster rate than the increase in cost of production. In addition, it was found that the volume of sales in the domestic market did not increase, while profits increased threefold relative to the indicators of 2019-2020. Severstal PJSC has also been issued a remedy aimed at ensuring competition. And as part of the administrative proceedings, fine of 8 725 448 647,5 rubles was imposed at the company.

Severstal did not agree with the acts of the Authority and tried to appeal them in court, but the Moscow City Arbitration Court supported the position of FAS Russia.