Twelve violations of the environmental legislation requirements were found at UralElectroMed in the course of the scheduled inspection conducted by Rostechnadzor, the environmental watchdog. This resulted in 18 orders to eliminate the violations and in 8 reports on the administrative offenses, with 25,000 RUR worth of fines to be paid, reports the spokesperson for Rostechnadzor in the Ural Federal District.

In addition, Committee of Rosnedra (Russian Subsoil Resources) for early termination of enjoyment rights (part of the Federal Subsoil Resources Agency) annulled the license allowing UralElectroMed to use the cinder dumps of Metallurgical Complex of Kirovgrad. The decision was taken on December 22, 2006 based on the examinations carried out by Rostechnadzor that revealed that even though the company had been supposed to start processing them no later than December 31, 2003, it actually never even drew up a plan for it.

Some experts believe that these events were the reason why the company’s share price dropped by almost 10% at the close of business on the Russian stock market last Friday.