Russia To Slap 8% Tariff On Ukrainian Large-Diameter Pipes?

The Russian Economic Development and Trade Ministry announced Friday that it would be imposing an 8% import duty on large-diameter pipe imports for three years. The new duties are expected to go into effect in one month. In July, Russia launched an antidumping investigation against large-diameter pipe imports. Andriy Gostik: At first glance this news appears negative for Khartsyzk Pipe (HRTR: Under Review), Ukraine’s primary exporter of large diameter pipes, however, the Ministry’s announcement also says that “developing countries with preferential status” will be exempt from these tariffs, which may bode well for the company. This loophole may give HRTR a chance to avoid the tariffs, however, until the situation becomes clearer we are putting our recommendation for the company under review.