Russian Industrial Ministry proposes reinstating pipe import duties

Russia’s Industrial Ministry proposed reinstating steel pipe import duties until 2015, according an article in Kommersant Russia this week. Kommersant said a decision would be made by year-end.  Russia halted duty-free imports of Ukrainian pipe on April 1, 2010 after the two governments failed to reach a new agreement. The Russian government later approved a 260,000 mt duty-free pipe allowance for Ukrainian pipe in 2010. Andriy Gerus: The new duties would have the strongest negative effect on Interpipe, the largest exporter of pipe to Russia from Ukraine. Interpipe controls Nyzhnyodniprovsk Pipe (UX: NITR UK), Novomoskovsk Pipe (UX: NVTR UK) and Niko Tube. We see no impact on Khartsyzsk Pipe (UX: HRTR UK), which only produces large-diameter pipe. We reiterate BUY on HRTR.