The suspension of the agreement on free trade area between Russia and Ukraine starting from January 1, 2016, may lead to the full stoppage of Russia’s steel pipe imports from Ukraine, as regular import taxes of 5-10 percent will be added to the current antidumping duty of 18.9-19.9 percent, according to local media. As a result, the total custom expenses of Ukrainian suppliers will increase to 20-30 percent per metric ton.
In 2014, Russia imported 228,000 mt of steel pipes worth a total of $282 million from Ukraine, according to the data of the Eurasian commission. In the January-September period of the current year, pipe imports from Ukraine decreased to 62,000 mt worth a total of $66.6 million, due to the devaluation of the Russian ruble and the escalation of the conflict between the two countries.
In 2015, Russia’s production of steel pipes is expected to amount to 11.54 million mt, up two percent year on year, while steel pipe imports are expected to total 350,000 mt, down by 44 percent year on year, according to Russia’s Foundation for Development of the Tube Industry (FRTP). Meanwhile, Russia’s total consumption of steel pipes is expected to reach 10.89 million mt in 2015, up 2.3 percent year on year.