Interpipe stops all pipe deliveries to Russia in 2015

Interpipe, one of the largest producers of steel pipes in Ukraine, will not supply any products to Russia in 2015 due to the slump in the Russian ruble and prohibitive import duties. As a result of the conflict in eastern Ukraine, relations between Moscow and Kiev deteriorated, and Russian steel producers actively lobbied for measures to protect domestic producers from Ukrainian imports.

Interpipe CFO Denis Morozov said that the company did not include supplies to Russia in its 2015 business plan due to anti-dumping duties that made this market unprofitable. Western sanctions against Russia and low oil prices pushed the Russian ruble down 40 percent in 2014, making foreign-made products less competitive in the Russian market. Morozov noted that the latest data show that the supply of seamless pipes to Europe is still subject to a 13 percent duty, which makes them more profitable in this situation.

Interpipe is one of the 10 world manufacturers of seamless pipes. The company plans to focus on Europe, America, the Middle East and Africa, expecting these markets to exceed 60 percent of its total business by the end of the year. Previously, Interpipe sold 44 percent of its products to Russia, while now it has become problematic, since bilateral relations between the countries are at a very low level.