May 31 (Reuters) – Russian metal producers and industrials, such as car markers, have reached a compromise in a dispute over higher prices for steel products after government intervention, Prime Minister Vladimir Putin said on Monday.
“There were heated discussions … agreement has been reached. It is essential to keep a tight control over all the factors of price growth,” Putin said.
“A one-time price hike of 25-30 percent falls outside normal economic logic. Behind such steps, there was the desire to claw back losses sustained during the crisis without thinking about the other market participants. That is very dangerous.”
He did not give details on prices or formulas which had been agreed for the long-term supply contracts.
Russia’s largest steel maker, Severstal (CHMF.MM) had asked for a 25 percent price hike for rolled steel products supplied to the country’s biggest carmaker AvtoVAZ (AVAZ.MM), but a source told Reuters on Friday the two sides had reached a compromise at 22 percent. [ID:nLDE64R179] [ID:nLDE64R1PF] (Reporting by Gleb Bryanski; Writing by Toni Vorobyova; editing by Maria Kiselyova)