1 billion roubles of tax claims are added to Mechel’s open-pit mine

The Investigating authorities have initiated a criminal case on the suspicion of tax evasion on a large scale at Mechel’s open-pit mine Tomusinsky. According to investigators, they understated the price for coal sold , the open-pit mine’s managements caused damage to the regional budget in the amount of 1 billion rubles.

As Investigation Department of the Russian Investigative Committee in the Kemerovo region reported, from 2009 to 2010, the management of the open-pit mine Tomusinsky (a part of coal company Southern Kuzbass, Mechel-Mining’s subsidiary) "deliberately understated the tax base for company’s income tax, as well as MET, understated the prices of coal". Thereby damaging in the amount of over 1 billion rubles was inflicted to the budget. These violations were identified by the Tax Inspectorate and police investigators of the Economic Security and Anti-Corruption Department under GU MVD of Russia in the Kemerovo region, the region’s Investigation Department specified.