Russia bans imports of Interpipe railway products

Russia added several railway products to the list of
goods banned for imports from Ukraine, according to a Feb. 9 report by
Interfax-Ukraine. Wheels, wheelsets and axles, produced in Ukraine by Interpipe
(INTHOL), had been added to the list by a Russian government’s act dated Feb.
6, the report said.

Dmytro Khoroshun: This
development is negative for Interpipe because it might result in a loss of 60
kt per year of railway product sales and a USD 30-40 mln decrease in annual
EBITDA, we estimate.

However, the company should be able to offset some
of the volumes it used to sell to Russia by expanding at other markets,
particularly in Europe.