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Mechel comes under Putin's criticism
RBC, 24.07.2008, Moscow 19:48:06.The Federal Anti-Monopoly Service (FAS) and the investigative committee of the General Prosecutor's Office must draw their attention to the fact that Mechel is selling raw materials abroad at half the price it charges domestically, Prime Minister Vladimir Putin told a meeting on ferrous metallurgy in Nizhny Novgorod today. Putin pointed out that Mechel chief executive Igor Zyuzin had been called in to a meeting, but "suddenly got sick." According to the PM, the company was selling its products in the first quarter of 2008 at half price compared to domestic and, correspondingly, global prices. Putin added, in essence, that the government was losing tax revenues on such transactions, and that Zyuzin needed to get well quickly to report on such discrepancies. As a result, Mechel's ADR price tumbled 19 percent on NYSE. As of 7:01 p.m., Mechel ADRs were changing hands at $29.5, 19.42 percent, or $7.11, down from the close on July 23, with the trading volume already exceeding $8.1m.
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