The Russian pipe makers will get an advantage from the cancellation of the free trade zone between Russia and Ukraine: in addition to antidumping duties for Ukrainian steel pipes, there would also be import duties.
In 2014 Russia imported 228 thousand tons of steel pipes worth $282 million from Ukraine, while in January-September 2015 – 62 thousand tons worth $66.6 million. Russia can produce the same range of pipes as Ukraine, but Ukrainian pipes are 5% cheaper.
The customs regime could increase the protection of the Russian pipe market, as the antidumping duties were not able to stop the Ukrainian exports altogether.
According to Andrei Tretelnikov of RMG, the joint duties on the level of 25-30% will become obstructive for Ukrainian exporters. (Ukrainian metal)