Russian Import Duty On Large-Diameter Pipes Takes Effect

Russia’s new 8% import duty on large-diameter pipes is scheduled to go into effect today. In November, the Russian Economic Development and Trade Ministry announced that it would be imposing an 8% import duty on large-diameter pipe imports for three years. In July, Russia launched an antidumping investigation against large-diameter pipe imports. Andriy Gostik: As we said when the duties were announced, at first glance this news appears negative for Khartsyzk Pipe (HRTR: Under Review), Ukraine’s primary exporter of large diameter pipes, however, the Ministry also said that “developing countries with preferential status” will be exempt from these tariffs, which may bode well for the company. This loophole may eventually let HRTR off the hook however, until the situation becomes clearer we are putting our recommendation for the company under review.