FAS Allowed Norilsk Nickel to Trade Nickel with 3% Maximum Surcharge

Federal Antimonopoly Service of the Russian Federation (FAS) has approved of the application of a group representing Norilsk Nickel, Norilsk Supplying Complex, Zapolyarie Building Company, Norilsk Industrial Transportation, Zapolyrie Health Center, Norilsknickelremont, Norilsk-Telecom, Taimyr Fuel Company, Norilskgeologiya, and Taimyr Airlines for purchasing of 60.15% of basic production facilities and non-tangible assets of Norilsk Mining and Metallurgical Complex Named after A.P. Zvenyagin and issued an order, FAS reports.

As a result of the transaction, the group incorporated in Mining and Metallurgical Company "Norilsk Nickel" and Kola Mining & Metallurgical Company will retain their dominating position in the Russian unalloyed crude nickel and nickel products market.

In the order FAS has foreseen trading for exchange prices for nickel. Russian consumers will be supplied unalloyed crude nickel for LME prices with a maximum 3% surcharge.

According to Mr. A. Ulyanov, Head of Industrial Control Department, strategic importance of nickel makes the order significant to Russian industrial and defense complex. The order conditions guarantee Russian nickel consumers nondiscriminatory terms and reasonable market prices.