Rusal must decouple prices for Russian consumers from European market by April 30 to eliminate premium over export prices - FAS

MOSCOW. March 30 (Interfax) - The Russian Federal Antimonopoly Service (FAS) has issued a warning to Rusal Group due to the linking of prices for products on the domestic market to European indicators.

The FAS warned the company of the need to amend aluminum supply contract terms by April 30, the FAS's press service said.

"This concerns the exclusion of provisions that caused aluminum prices for Russian consumers to exceed export prices. In the pricing formula for Russian consumers, the group of companies took into account a regional premium based on the European segment indicator of the global aluminum market. At the same time, at present, the European market has lost its representativeness for Russia due to the reorientation of exports to Asian markets, where metal prices are lower," the FAS said.

Priority in pricing should not be given to foreign processors to the detriment of the interests of domestic processors, it said.

In order to reduce the risks of violating antimonopoly legislation, the FAS previously recommended that Rusal develop a sales and distribution policy, which currently has not been developed, the agency said. "If the warning is not heeded, the FAS will initiate an antitrust case," it said.