Russia Metals and Mining, EU Commission

NLMK and Severstal file lawsuits against the European Commission

On October 28th, both companies filed lawsuits to the European Court of general jurisdiction against the European Commission, the Court's website reports.

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Russia and the EU to discuss trade barriers

On Friday, Russia and the EU will hold a traditional "steel dialogue" - the annual meeting of metallurgical companies and officials.

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Brussels starts another investigation against Russian metallurgical companies

Russian metallurgical companies have become the object of a new investigation of the European Commission (EC): local steelmakers complained of dumping shipments of flat hot-rolled from Russia and four other countries. But, according to the Kommersant’s sources, for a while only 6% of the dumping margin is imputed to the Russian metallurgical companies, and a possible duty of 6-10% will allow them to maintain the basic supply volumes. Analysts estimate the possible loss of the Russian participants of the industry in such situation at only $50-60 million of EBITDA per year.
The EC has initiated the anti-dumping investigation on imports of hot-rolled flat products from Russia, Serbia, Brazil, Iran and the Ukraine. It was started at the request of the steel lobby Eurofer, filed on May 23, the Bulletin of the EC informs. The investigation will concern uncoated flat hot-rolled except electric steel and stainless steel. The Commission will examine the delivery for the period from July 1, 2015 to June 30, 2016 in order to fund the dumping and injury to local producers, as well as the situation in the period from January 1, 2013 to assess whether the tendency evolved then, threatening the EU steelmakers. The investigation will take up to 15 months, the preliminary duties can be introduced in nine months - in spring of 2017.

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European Commission doesn’t take into account arguments of Russian metallurgical companies against duties

The European Commission, the Russian Ministry of Economy and metallurgical companies have discussed the situation around the EU anti-dumping duties on Russian rolled metal and possible violations during the inspection, by results of which they were introduced. The companies have a lot of claims to the conclusions of the EC, including with regard to the behavior of its members who allegedly have explicitly declared their "hatred for Russia". But for a while, according to the Kommersant’s information, the Russian side hasn’t been able to seriously affect the situation, although the European officials have promised to "take into account" received objections and comments.
On Friday, consultation on the preliminary results of the anti-dumping investigation in respect of the supplies of Russian cold-rolled products in Europe took place in Brussels. The meeting was attended by representatives of the European Commission, Ministry of Economy of the Russian Federation, NLMK and Severstal. Preliminary results of the investigation were published in February. As a result, the mode of "non-cooperation" was applied to Severstal and Novolipetsk Steel and temporary duties in the amount of 25.4% and 26.2%, respectively, were introduced. In late May, the European Commission increased the duty to 34.1% for Severstal and to 36.1% for NLMK and other companies. The only exception was Magnitogorsk metallurgical plant (MMK), for which the duty was reduced to 18.7%. The Commission’s report explains the increase in the duties with the 63.8% final dumping margin of Severstal and 68.3% of NLMK and others, besides MMK.

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The EC accuses Russian metallurgical companies of “non-cooperation”

The European Commission has adopted the mode of "non-cooperation" against Severstal and NLMK, the two main suppliers of cold-rolled steel in the EU, which allowed it to establish protective import duties at the level of 26%. The final amounts of the fees will be announced in August – if it is saved, the Russian steelmakers may lose about $300 million per year. At the same time, a new investigation in Brussels could threaten the companies - already on the hot-rolled metal.
Last Friday, the European Commission published the preliminary results of the anti-dumping investigation in respect of cold-rolled flat products from China and Russia and introduced temporary duties for Russian metallurgists. Every year, Russia exported to the EU up to 1 million tons of cold-rolled steel to the amount of about $300 million, the main suppliers are Severstal of Alexei Mordashov (250-300 thousand tons), NLMK of Vladimir Lisin (about 300 thousand tons) and MMK of Victor Rashnikov (150-200 thousand tons). During the first 11 months of 2015, the import of these products from Russia to the EU, according to the European steel lobby Eurofer, made up 850 thousand tons.

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In 2015, trade between Russian the EU fell by 40%

According to preliminary data, in 2015, the goods turnover between Russia and the European Union decreased by 40% as compared to 2014 to $230billion, the First Deputy Head of the Ministry of Economy of Russia Alexei Likhachev stated.
"Valuation roll is very noticeable, clearly showing that, along with other economic groups, namely the European Union suffered the greatest losses in trade with Russia. In figures, this is the fall from $417 billion in 2013 to $230 billion by the end of this year," - he said.

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German business raises its voice against anti-Russian sanctions

Yesterday, Russian-German Chamber of Commerce presented results of a survey on the impact of economic sanctions on the business of German companies in Russia. Although respondents recognize the cost-effectiveness of sanctions, the majority of them considers them politically ineffective and hopes for their mitigation or even abolition in January 2016. The German Foreign Minister, in turn, though it acknowledges the negative effect of the sanctions, is not ready to speak for their abolition before the fulfillment of Minsk agreement on the Ukraine.
The results of the survey, conducted among 110 German companies, working in Russia, were presented by head of the Russian-German Chamber of Commerce Rainer Seele yesterday. "A friend in need is a friend indeed: in spite of the sanctions and the difficult economic situation in Russia itself, the fall of the ruble, German companies don’t go away from the Russian market, still seeing the prospects here," - he said to the Kommersant.

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European Union introduces protective duty on Russian special steel

On last Friday, the European Commission summed up the anti-dumping investigation on the transformer steel market in Europe, the EC reports. The European zone countries set a duty for this steel for China (28.7%), Japan (35.9%), South Korea (22.8%), the USA (22%), as well as for Russian (21.6%) the EC magazine informs. The dumping margin of Russian transformer steel producers, according to the EC, was 29% (for comparison: the USA’s one - 60.1%).
The EC has analyzed the period from July 2013 to June 2014 and has established anti-dumping duties with a proviso: NLMK and companies from Russia may sell the transformer steel on the European market duty-free, but at the price of not less than 1536 euro per 1 ton. If the price of transformer steel will below this amount, the company will have to pay the anti-dumping duty.

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"Rosneft" asks 400 billion roubles for the reconstruction of the "Zvezda" shipyard.

"Rosneft" had asked the government 400 billion roubles from the National Welfare Fund for the reconstruction of the Far Eastern shipyard "Zvezda", the source in the United Shipbuilding Company told RBC. This information was confirmed by a source in "Rosneft", stating that the amount of "similar to the truth".
In August 2013 Igor Sechin offered the oil company to pass the protracted project of "Zvezda" modernization. Vladimir Putin supported this idea, but stated that USC should have remained in the draft as a junior partner. At a meeting with President Vladimir Putin, which took place on November 13 in Vladivostok, it was decided that "Rosneft" is engaged in a project on its own, including the search for sources of financing, the official of the RF Ministry of Industry and Trade states.

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The impact of sanctions on Russian oil and oil service companies to be small.

The impact of the EU and the US sanctions on the Russian oil companies will be relatively small, the Standard & Poor's international rating agency’s research report informs.
According to the agency, this is mainly due to the nature of the Russian oil reserves, the structure of the equipment purchase, as well as the structure of the Russian oil companies’ assets.
As S & P analysts state, the Russian oilfield services companies with ratings will also not be too badly affected by the sanctions. They mainly operate the traditional oil reserves and use the traditional techniques, which are currently not affected by the sanctions. These companies purchase most of the equipment from Russia or can switch to the suppliers from China and other countries outside the EU and the United States.

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