Chelyabinsk Ferroalloy Plant challenges EU sanctions in court

The Chelyabinsk Electrometallurgical Plant (CHEMK), the largest producer of ferroalloys in Russia, has filed a lawsuit with the European Court of Justice over the sanctions imposed on it earlier.

CHEMK and Kuznetsk Ferroalloys have filed a lawsuit against the European Commission in order to challenge the legality of the introduction of anti-dumping duties on the supply of ferrosilicon. CHEMK hopes that the European Court of Justice will demand the cancellation of import duties. CHEMK claims that price dumping has been established for the Bratsk Ferroalloy Plant. The parent company of the plant in Bratsk belongs to Mechel, which does not dispute the EU's decision to dump prices for supplies to Europe.

In April 2014, the European Commission imposed anti-dumping duties on imports of ferrosilicon from Russia, which is an important component in the production of steel and pig iron. Antidumping duties, which are envisaged for five years, have also been imposed on imports of ferrosilicon from China. This alloy is produced in Russia at the plants of Alexander Aristov CHEMK and Kuznetsk ferroalloys, as well as at the Bratsk Ferroalloy Plant of the mining metallurgical group of Igor Zyuzin, Mechel.

In general, relations between Russia and the West have deteriorated due to the crisis in Ukraine, which may also be the reason for the EU's prejudice. At the end of July, the EU and the US moved from targeted sanctions against individuals and companies to restrictions on the Russian oil and defense industries, as well as state-owned banks. In response, Russia has imposed a one-year ban on food imports from these countries. So the confrontation continues.