MMK's position on the conclusion of the FAS regarding violation of antimonopoly legislation

PJSC Magnitogorsk Iron and Steel Works (MMK) disagrees with the preliminary conclusion of the Federal Antimonopoly Service of Russia (FAS) on the establishment of monopolistic prices on the Russian metallurgical market and will continue to prove its commitment to fair market competition.

On 29 December 2021, an FAS committee submitted an opinion on the circumstances of a case, according to which MMK's actions revealed a violation of federal antimonopoly legislation and "maintaining monopolistically high prices for hot-rolled flat products since January 2021." Having reviewed the conclusion on the circumstances of the case, MMK considers the conclusions of the committee unfounded and inconsistent with the facts on the ground.

During 2021, MMK provided exhaustive evidence that the Company is not the dominant seller in the flat rolled products market and does not violate antimonopoly legislation. As MMK stated earlier, the market for hot-rolled flat products remains volatile, and the price changes that occurred in 2021 were the result of market conditions.  

MMK will continue to participate in the consideration of the case and provide the FAS with fact-based evidence of the economic validity of its pricing policies, as well as of the Company's commitment to the principles of fair competition.