4th Apr 2016 08:55
LONDON (Alliance News) - Mondi PLC on Monday said Russian authorities have started an investigation into its Russian business, sending shares in the Anglo-South African paper and packaging company lower.
Shares in Mondi were down 2.5% to 1,314.00 pence on Monday morning, the worst performer in the FTSE 100.
Mondi said the Federal Antimonopoly Service of the Russian Federation said last week it had initiated an investigation into Mondi Syktyvkar for violating anti-monopoly laws in regards to pricing of offset paper.
Mondi said it has not received any notification to this effect from the Russian regulator and has no further details on the probe.
On Friday, the Federal Antimonopoly Service said it had opened a case against Mondi's unit in the country. It said it had established the cost of offset paper for domestic customers had increased around 50%, which did not match the change in the cost of producing and selling the goods.
"FAS continue watching the situation on the markets of cellulose-and-paper industry in Russia. A recently observed increase of prices for offset paper has elements of violating the antimonopoly law," said Nelli Galimkhanova, head of FAS Department for Industry Control.
The Russian regulator started inspections of the largest manufacturers in the country's cellulose-and-paper industry in December 2014 in order to determine whether pricing in the industry complies with antimonopoly laws.
By Sam Unsted; [email protected]; @SamUAtAlliance
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