SUEK and Mechel Under Investigation

The Federal Anti-Monopoly Service said Friday that it had opened an investigation into thermal coal pricing by SUEK and Mechel's Yakutugol subsidiary after a power firm accused them of price fixing.

The service said it had opened the investigation after receiving a statement from the Far Eastern Generating Company. The watchdog will begin its review of the case on Dec. 24.

Mechel declined to comment on the matter, while SUEK could not be reached for immediate comment.

FEGC also told the regulator that SUEK wants to raise coal prices by 35 percent next year, while Yakutugol wants an increase of 39 percent.

In its statement, the service noted that the two companies have a dominant position in the coal markets where FEGC is active, including the regions of Khabarovsk, Primorsk, Amur and the Sakha Republic.