Russia Considers 8% Duty on Large-Diameter Pipes.

Russia’s Economy Ministry on Friday proposed an 8% import duty on pipes with a diameter of more than 508 mm imported from Ukraine, Germany, Italy and Japan. However, Gazprom and major Russian oil companies said they would lobby the government not to approve the duties. Andriy Gostik: The Ukrainian pipe producers that would be hurt by the duty are Khartsyzsk Tube (HRTR: SELL) and Novomoskovsk Pipe (NVTR: BUY), the only LD pipe producers in Ukraine. Until last year HRTR was the only producer of pipes suitable for gas main lines, but Russia’s Vyksa Steel Works (controlled by Russian pipe major OMK) launched production of such pipes last year and Severstal plans to follow in 2007. We think there are good chances the duties will be postponed for 1-2 years thanks to Gazprom’s political clout.