EU and Russia reach agreement on quota issue

EU and Russia reach agreement on quota issue

According to recent news in the market, European Union (EU) and Russia reached an agreement about the quota volume the Russia demanded EU to increase due to expansion of EU as of May 1, 2004. As previously reported by SteelOrbis, Russia was worried about EU expansion as exports of Russia to certain Eastern European countries will be included to the EU quota allocated to Russia after these countries join EU, thus leading reduction in the exports of Russia. The current quota allocated to Russia is 1.38 million tons and Russia exports approximately 500'000 tons to Eastern European countries. According to preliminary data, the quota allocated to Russia will be increased by 437'000 tons. Severstal will deliver 119'000 tons of the total amount and Mechel to deliver 42'000 tons.