Russian Prime Minister Mikhail Kasyanov has signed a resolution ordering the imposition of a special duty on steel pipe imports from Ukraine for a period of three years effective January 1, 2002, according to Interfax and other reports. The duty, which also applies to pipes produced in Ukraine which enter Russia via Belarus, will be subject to a 40% duty and for large diameter pipes, 20%.

The new import duties are to be levied upon the expiry of the Russian-Ukrainian quota agreement which limits the amount of Ukrainian pipe imports entering Russia to 620,000 tonnes for calendar 2001. The Russian Economic Development & Trade Ministry has carried out an investigation, at the initiation of the Russian Pipe Industry Foundation, and has determined that the sharp rise in Ukrainian pipe imports damages Russia's pipe industry, added the reports.