Ukraine and Russia may sign tube agreement

Ukraine and Russia may sign tube agreement

Ukrainian and Russian governments are reportedly planning to sign an agreement by the end of this year regarding deliveries of black pipes between the two countries for the period of 2005-2007. In line with the deal, Ukrainian producers will be allowed to deliver 715'000 tons of pipes to Russian users, including 230'000 tons of pipes with a diameter of 1'420 mm. In this case, Russian pipe producers are proposed to place 80'000 tons of pipes to Ukrainian users in 2005. Russia currently supplies 20'000 tons of pipe to Ukrainian market. Moreover, according to the deal, these volumes will increase by 3% each year.