Russia Prolongs Investigations Into Ukrainian Large Diameter Pipe Imports.

The new deadline for the investigation is February 4, 2005. Earlier the Russian Economic Ministry proposed that the Russian government set a quota for large diameter (LD) pipes at 421 ths mt per year, 208 ths mt of which would be earmarked for Ukraine. However, Ukraine balked at the plan and the idea was canned. Concorde Capital: The extension of the investigation will allow Khartsyzk Tube (HRTR: SELL), Ukraine’s main LD pipe producer, to continue enjoying unrestricted export to Russia, its key market. In addition, the lag will allow Gazprom to make another lobbying effort trying to persuade the Russian government not to restrict the import of Khartsyzk Tube’s pipes with duties or quotas. This means that HRTR still has a chance to win the Gazprom tender to supply pipes for the North European Gas Pipeline. WATCH