Russia ends duty-free imports of Ukrainian pipes

Russia’s duty-free import allowance on steel pipes from Ukraine expired as of April 1, Russia’s Customs Service reported yesterday, after the new governments failed to reach a new agreement. Ukraine had been allowed a duty-free quota of 55 ths mt of steel pipes in 1Q10. The largest importer of pipes to Russia from Ukraine is Interpipe, which controls Nyzhnyodniprovsk Pipe (UX: NITR UK), Novomoskovsk Pipe (UX: NVTR UK) and Niko Tube. Without the quota, Interpipe’s products will be subject to an 8-55% duty. Russia’s pipe market was estimated at USD 3-4 bln, with Ukrainian pipes making up an USD 250-300 mln of the market.