Russia nears steel quota deal with European Union
Industry sources report that the steel quota deal between Russia and the European Commission will be signed in April. In line with the agreement, which remains to be finalized, Russia would be allowed to export 2.217 million tons of steel products to the European Union (EU) in 2005. The quota allocated to Russia in 2004 was 1.8 million tons. The 2005 quota for Russia would be divided into 510'000 tons for long products and 1.7 million tons for flat products. Moreover, both sides agreed to expand the quota for Russian steel producers to 2.273 million tons in 2006, up 2.5% from the 2005 quota. According to talks completed at the end of 2004, the deal will expire either on December 31, 2006, or when Russia joins the World Trade Organization (WTO). A possible reduction in Russian steel exports following the expansion of the EU on May 1, 2004, was the reason behind Russia's insistence for an expanded quota.