Constructors accuse Eurocement of overpricing, Russia

Constructors accuse Eurocement of overpricing, Russia
Published: 10 July 2006

Hardly has Eurocement made peace with the Federal Anti-trust Service, when it found itself in the midst of another scandal. Constructors have accused it of creating artificial shortage and overpricing. The Russian Association of Constructors has sent an open letter to the government.  Experts confirm both the shortage and the growing prices. 
 
Eurocement denies all accusations. "It is all because of the booming demand, which has soared by 20 per cent since April alone," a company representative said. "Our plants work to full capacity; production has gone up 29 per cent this year."  Eurocement sells about 50 per cent of its cement under direct contracts. When cement is in short supply, these commitments are the first to be honoured, the spokesman said.