Russian Prime Minister Vladimir Putin has advised the country's pipemakers to set their product prices at competitive levels. He stressed that the Russian pipe industry has started to produce all the necessary product types and so the country is no longer dependent on pipe imports; however, he said, pricing still remains an issue.
According to Mr. Putin, the Russian pipemaking enterprises have to make goods that are globally competitive both in quality and price. "When I was trying to exert a bit of pressure on those who were making the decision on the Nord Stream project in order to advance the interests of Russian manufacturers, their prices turned out to be significantly higher than those of their foreign counterparts," he added.
As for pipe imports, Mr. Putin said that the main competitor for Russian pipemakers is the Ukrainian pipe industry. Firstly, he noted that some Russian financial institutions are purchasing assets in the Ukrainian steel industry, so these are no longer ‘foreign', and, secondly, he pointed that the Ukrainian companies offered products of the same quality at lower prices.
"Unlike in previous years, over 90 percent of domestic demand for pipes is now met by domestically made products. If Ukraine fully joins the integration process in the post-Soviet space, for example if it joins the customs union or enters the common economic space, and, if Ukraine continues to modernize properly, including with Russian investment, it will provide tougher competition," Mr. Putin said.