Interpipe, one of Ukraine’s largest steel pipemakers, will not supply any products to Russia in 2015 due to a slump in the Russian rouble and prohibitive import duties, the company said in a statement.
A pro-Russian separatist uprising in east Ukraine has soured relations between Moscow and Kiev and Russian steelmakers have aggressively lobbied for measures to defend domestic producers from Ukrainian imports.
“We don’t have any supplies to Russia in our business plan for 2015. Rouble devaluation and anti-dumping duties have made supplies to this market unprofitable,” – Interpipe’s Finance Director Denis Morozov was quoted as saying.
Western sanctions over Russia’s action in Ukraine and a sliding oil price pushed the Russian rouble down 40% in 2014, making foreign-made products less competitive on the Russian market.
The latest available data shows that Russia in 2013 accounted for 10% of sales for Interpipe, a top 10 global producer of seamless pipes.
The company said it plans to focus on Europe, America, the Middle East and Africa, expecting the combined share of these markets to exceed 60% of its business by the end of the year, Morozov said.
The company has not published its financial results online since 2012, when it reported a loss of $71.7 million. (https://af.reuters.com/article/commoditiesNews/idAFL6N0V84DJ20150129/Ukrainian metal)
