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Russia Regulator Probes Rusal Over Market Abuse Allegation
Edited by : AL CIRCLE
1 min read
Russian Federal Anti-Monopoly Service, or FAS, said on Wednesday it has launched an investigation against the world's biggest aluminum producer United Co. Rusal PLC (0486.HK), suspecting the company of abusing its dominant position in the local market.
FAS's investigation concerns a Rusal trading subsidiary, which the service suspects of enforcing disadvantageous conditions of supply to a counterparty.
A statement said that the claimant company had complained that Rusal "systematically" declined to sell it aluminum from its plant geographically closest to the firm, and instead sold the metal from some of its plants further away, which led to a "significant" rise in the transportation costs for the client and reduced its competitive position on the market.
Rusal said the grade of primary aluminum it supplied to the claimant constituted "no more than" 2% of the company's sales in Russia. Rusal's spokeswoman couldn't immediately comment on whether the revenue or the physical volumes were meant.
VTB Capital analyst Vadim Astapovich said a possible fine would have a minimal impact on Rusal.
FAS's investigation concerns a Rusal trading subsidiary, which the service suspects of enforcing disadvantageous conditions of supply to a counterparty.
A statement said that the claimant company had complained that Rusal "systematically" declined to sell it aluminum from its plant geographically closest to the firm, and instead sold the metal from some of its plants further away, which led to a "significant" rise in the transportation costs for the client and reduced its competitive position on the market.
Rusal said the grade of primary aluminum it supplied to the claimant constituted "no more than" 2% of the company's sales in Russia. Rusal's spokeswoman couldn't immediately comment on whether the revenue or the physical volumes were meant.
VTB Capital analyst Vadim Astapovich said a possible fine would have a minimal impact on Rusal.
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