Medvedev decides not to extend quotas for Ukrainian pipes

11:24 18.07.2013
Ukraine

Russia will not renew the quotas for the supply of Ukrainian pipe products in the current half-year, Russian Prime Minister Dmitry Medvedev announced this in Chelyabinsk at a meeting on the development of iron and steel industry on Tuesday.

"By the way, I want to tell you that I have decided not to extend the quotas for the supply of Ukrainian pipe products in the first half, despite a number of complaints about it," the prime minister said, according to a transcript of the meeting posted on the Russian government website.

He called the reduced demand for the products and, as a result, lower prices a key problem of the Russian iron and steel industry. "The annual average growth will not exceed 1.5%. This year, the output may remain unchanged or decline by 1%-3% as compared to 2012," Medvedev noted.

A reminder that pipe supplies above the quota are subject to anti-dumping duties in Russia: on casing - 18.9%, tubing - 19.9%, oil line pipelines - 37.8%. Protective duties are valid until November 2015.

As part of the September 2011 agreement, regulating the amount of duty-free supplies of Ukrainian pipes to Customs Union countries, Ukraine's quota for the supply of pipes to Russia in 2011 and 2012 amounted to 300,000 tons. At the end of December last year, the sides amended the agreement, according to which the quota for duty-free pipe supplies to Russia for Ukraine was set for the period from January 1 to June 30, 2013 in the amount of 120,000 tons.

Adapted from ukrinform.ua

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