Russia prepares to extend import duties on Ukrainian pipes

Russia prepares to extend import duties on Ukrainian pipes



7 липня 2015 года
Конкорд Капитал

The Eurasian Economic Commission (EEC) announced on July 7 that it has started a second anti-dumping investigation of the import of steel pipes from Ukraine. The commission imposed import duties in the range of 18.9% to 37.8% in 2011 on different types of Ukrainian pipes, expiring Nov. 18, 2015. The commission claims that prices for Ukrainian pipes were lower than those produced in Russia between 2012-2014, and that lifting trading barriers – with the expiration of duties – would harm Russian producers of pipes.

Roman Topolyuk: Ukraine’s largest pipe producer Interpipe (INPIP) used to be Russia’s main supplier from Ukraine, and Russia used to be Interpipe’s key market, having generated 27% of the company’s total revenue in 2013. After a special duty-free trade regime with Russia – enjoyed by Interpipe since 2005 – was dropped in 2H13, import duties of around 19% were slapped on the company’s exports, swallowing its EBITDA margin. The thin profitability of supplies to Russia and worsening trading relations have pushed the company to redirect supplies to other regions, primarily the Middle East and North America. In early 2015, management claimed it wasn’t planning any supplies to Russia during the year, though no exact data is available to confirm whether these plans have been implemented.



A renewed anti-dumping investigation of Ukrainian steel pipes is slightly negative for INPIP, indicating once more that the adversarial trade regime between the two countries is far from any thaw.

Источник: Конкорд Капитал

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