A supplier can be disqualified for a set amount of time or indefinitely if it fails to conduct business properly with the Group or its subsidiaries. Metinvest’s Supplier Relations Board is responsible for deciding whether to disqualify a supplier or resume cooperation with a previously disqualified supplier. The Board is entitled to disclose information concerning the reasons for a supplier’s disqualification.

Supplier disqualification criteria:

  • systematically delivering poor quality goods, works and services;
  • supplying counterfeit products;
  • failing to comply with delivery deadlines for goods, work and services, as well as with the established health and safety rules at Metinvest’s operations;
  • refusing to sign a standard contract, if required in the supplier selection process;
  • refusing to sign specifications to a supply contract after the offer price has been set (within a tender or bidding);
  • failing to comply with ethical and transparent business principles, including collusion between suppliers to increase and maintain unreasonable prices for goods, work and services;
  • attempting to bribe Group employees;
  • poor annual performance;
  • other criteria (as decided by the Supplier Relations Board).

All Metinvest assets maintain a shared supplier performance database containing the names of suppliers that have been disqualified, as well as the reasons for their disqualification.