Russia, EU likely to sign steel quota deal soon

Russia, EU likely to sign steel quota deal soon

Russia and the European Union are likely to sign a steel quota deal by the end of June, sources report. In fact the two sides agreed on steel quotas at the end of last year. (Russia and the European Union agree on steel quota) 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, the quota for 2006 will be increased by 2.5% to 2'273 million tons. The deal will expire on December 31, 2006 or until Russia joins the World Trade Organization (WTO). A possible reduction in Russian steel exports following the expansion of the EU on May 1, 2004, prompted Russia to ask for an expanded quota.