Russia To Extend The length Of The Anti-dumping Investigation Into Ukrainian Pipe Exports.

The new deadline for the investigation is November 3, 2005. Russia started this investigation on June 20, 2004. According to the Russian Economics and Trade Ministry, in 5M05 pipe exports from Ukraine to Russia grew 10-11% yoy. Last year, the exports were capped by a quota of 715 ths mt of pipe per year. In 2005, the two countries were supposed to introduce a free trade zone arrangement, and no restrictions were set for Ukrainian pipe makers. In January 2005, five pipe plants associated with Interpipe agreed to voluntarily restrict their pipe exports to Russia and thereby be cleared from the investigation. On the other hand, Khartsyzk Tube which is owned by SCM, and is a major producer of large diameter pipes for Gazprom, used this opportunity to vastly increase its exports to Russia. Concorde Capital: The prolongation of the investigation gives Ukrainian pipe makers who did not impose export restrictions themselves another four months of free trade in Russia. Khartsyzk Tube is the company who will benefit the most from this situation. Yet, it is very likely that upon the completion of the investigation HRTR will also be most affected if the investigation results in the imposition of sanctions.