Russia, European Union ink steel quota deal
Russia and the European Union (EU) signed last week the long-awaited steel quota deal that will be effective for exports of steel products from Russia to the EU during 2005-06. According to the statement made by Russia's Ministry of Economic Development and Trade (MERT), Russia will be able to export 2.2 million tons of steel products to the EU this year, which will be increased 2.5 percent in 2006. The agreement signed last week was originally outlined in December 2004. Moscow demanded the EU increase its steel quota allocated for Russia's exports, following the expansion of the EU in May 2004. The agreement also stipulates that the EU will increase the quota further, if Russia cancels export duties on waste and ferrous metal scrap. Moreover, the agreement allows transfer of 7 percent of the quota to 2006, if it is not used this year.