Arcelor's shareholders voted Friday to tear up a previous agreement with the Russian company in favor of a bid from the world's No. 1 Mittal Steel.
"What we have here is a system of double standards. Russia's burgeoning companies are being prevented from entering international markets," said Valentin Mezhevich, deputy chairman of the Federation Council's Commission on Natural Monopolies.
His position was echoed by Oganes Oganyan, head of the house Economic Policy Committee.
"Arcelor's decision to merge with Mittal Steel rather than Severstal suggests that it was based not on corporate but political interests," he said.
The Severstal deal would have gone through if shareholders holding at least half of Arcelor's stock had voted for it. Now, the Luxembourg-based company will have to pay 140 million euros ($175 million) to the Russian company in compensation.
The vote was preceded by a bitter five-month takeover battle with Mittal, resulting in the London-based company raising its offer to 25.4 billion euros. Arcelor and Mittal will hold 50.6% and 49.4%, respectively, in what will be the world's largest steelmaking group.
Severstal offered to pay 13 billion euros for a 25% stake in Arcelor.
