Russia To Halt Negotiations With Ukraine Over Pipe Trade.

The Russian Economic Development and Trade Ministry has already sent a respective proposal to the Ukrainian Economic Ministry. If the proposal is accepted, pipe trades between the two countries will be regulated by the general free trade agreement signed in 1993. Concorde Capital: Ukraine exports the majority of its pipe output, and Russia is the largest consumer of Ukrainian pipes. Previously, Ukrainian pipe exports to Russia were limited by a quota. Ukrainian pipe makers will benefit from free trade in the short run, but eventually Russia, who is carrying out an antidumping investigation into pipe exports from Ukraine, is likely to take protectionist measures, such as imposing an import duty. Khartsyzk Tube (HRTR: SELL) who did not sign the export self-restriction memorandum with Russia like Ukraine?s large other pipe makers did, is posed to benefit the most in 2005, but it also will be the first one to come under attack when Russia imposes duties.