Antimonopoly Committee Fines Ukrvuglemash For Abuse Of Its Monopolistic Position.

The fine levied was for USD 17.6 ths. The committee found out that Ukrvuglemash has been setting different prices for similar agreements with different customers. The price difference amounted to up to 20%. SCM and IUD-related Ukrvuglemash is a managing company for seven producers of coal mining machinery, including Druzhkivsky and Donetskgirmash. Concorde Capital: The two plants mentioned, posted significantly lower profitability margins than their Ukraine’s peers not related to Ukrvuglemash, and we see transfer pricing here, involving Ukrvuglemash, which participates in tenders on behalf of them. We believe the government’s pressure on ukrvuglemash will result in more transparency from Druzhkivsky and Donetskgirmash.