Russia and Ukraine settle for an additional pipe quota

Russia and Ukraine settle for an additional pipe quota

Recent market news report that, Russia and Ukraine have settled for an additional pipe quota that makes the total quota allocated to Ukraine 715'000 tons for 2004. The additional quota accounts for 15% of the current quota. However, Ukrainian pipe exporters' demanded two fold of the additional quota. The new quota for pipes include large diameter pipe products, the quota of which is increased to 230'000 tons. In line with the agreement signed between Russia and Ukraine in 2001, the latter was allowed to export a total of 620'000 tons of pipes, 135'000 tons of which is constituted by large diameter pipes. As the pipe market grew 12% in 2003 in Russia, the additional quota granted to Ukraine is justified, an official from Russian firm United Metallurgical Company (UMC) stated.