Stakhanov Ferroalloy Investigated For Tax Evasion.

The Stakhanov Prosecutor’s office opened legal proceedings against Stakhanov Ferroalloy’s (SFER: SELL) corporate officials who are accused of purchasing raw materials at above-market prices. This hurt the company’s profits and resulted in the state not receiving due taxes. Concorde Capital: In our industry report on Ukrainian ferroalloy producers, we said that we thought SFER had practiced transfer pricing by buying manganese ore from companies associated with its owner, Privat Group. We deem that pressure from the state authorities will help SFER to become more transparent and make it post true earnings as early as 2006?2007.