Russia will allow the duty-free import of 260,000 mt of certain types of steel pipes from Ukraine, Russia's prime minister, Vladimir Putin, said on Tuesday, April 27.
"Today we will make a decision which has long been expected by Ukrainian pipe producers. As the government of Ukraine requested, we will make a decision for 260,000 mt of Ukrainian pipes which will be sold in the Russian market," Mr. Putin said, adding that these pipes will be supplied mainly for the needs of Russian state-owned companies Gazprom and Transneft.
The quota for supplies not subject to antidumping duty payment in 2009 was 427,000 mt, but because of low demand the exported volumes were less.
The main Ukrainian pipe exporter within the framework of the agreement with Russia is the pipe and railway wheel producer Interpipe Corporation. On January 13, 2005, five Ukrainian companies, which are all currently subsidiaries of Interpipe, received the right to duty-free exports to Russia of certain types of steel pipes up to a certain quota. The quota for 2005 was set at 395,000 mt, with a two percent increment annually through December 31, 2009, the date when the agreement ended. At the end of Q1 2010, Russia stopped duty-free imports of Ukrainian pipes in the absence of agreed quotas for supplies not subject to antidumping duty payment. Thus, starting from April 1 2010, Interpipe's pipe supplies to Russia were liable to duty in the amount of 8.9 to 55.3 percent, and so supplies decreased to an insignificant volume.