Expansion of EU worries Russian steel exporters
According to recent market news, Russian steel exporters are worried about their exports into Eastern European countries, most of which will be members of EU in spring.
Seven countries which were formerly members of Warsaw Pact, will join EU, so that
Russia is expected to lose significant amount of its shares in European markets. Under the scope of the agreement that was signed in 2002,
Russia is allowed to export 1.3 million tons of steel roll into EU next year. However, this volume does not include 500'000 tons of steel roll that are exported into Eastern European countries.
In order not lose its shares in Eastern European markets,
Russia has been in negotiations with EU officials for a long time, with the purpose of expanding the volume of steel roll it is allowed to export into EU under the scope of the agreement signed in 2002.
As a response to Russian request, European Trade Commissioner Pascal Lamy stated that EU will take into consideration Russian request, while adjusting the quotas, after the candidate members join EU.
Previously, during talks in May, 2003, an EU official stated that the quota allocated to
Russia for steel products will be increased to 495'000 tons, which is closer to the volume
Russia currently requests.
Certain Russian producers commented on the issue, expressing their belief in EU to soften its regulations regarding steel imports. However, some producers, believing that EU will use anti-dumping regulations to hinder steel imports, as US does, stated that they are not optimistic about the issue.
It is obvious that, in case EU hinders Russian exports,
Russia will lose great part of its shares in European market.