Russian steelmakers want EU to raise quotas

On April 21, the negotiations on the volume of the EU quotas for Russian steel products in 2007 started between representatives of Russia's Ministry of Economic Development and Trade (MEDT), the Ministry of Industry and Energy of Russian Federation and the EU representatives. The total steel quota allocated to Russia is 2,273,000 tons for 2006. ’It is the very first meeting, and we are interested in hearing out the options on the issue from both our European colleagues and domestic metallurgists, and then we will decide whether to sign the new quota agreement or leave the old one. Besides, with the Russian accession to the WTO, all quotas will be lifted', said representative of the MEDT. Mechel, one of the Russia's largest steelmakers, demanded that the EU increase the quota on Russian steel products, especially on flat rolled. ’The EU quota for flat rolled is incredibly small, and we are almost deprived of chances to supply these products in the European markets', said Alexey Ivanushkin, the Acting Director of Mechel, in the open letter to the MEDT. In 2006, Mechel's total quota was a bit more than 200,000 tons, including only 14,000 tons of flat rolled, while the EU quota allocated to Russian flat products was distributed mainly between Severstal, almost 790,000 tons in 2006, MMK, almost 620,000 tons and NLMK 352,000 tons. That is why, Mechel asked the MEDT to arrange to raise the EU quota by 50 percent to 309,685 tons for the enterprise. Moreover, the enterprise asked the quota for coil to be raised four times to 39,821 tons a year and that on plate eight times to 30,000 tons. Mechel's initiative is supported by other Russian steelmakers.