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Russian pipe producers propose protectionist law

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MOSCOW, May 23 (RIA Novosti) - An organization representing Russian pipe manufacturers Tuesday proposed that a law be adopted to force national pipeline projects to use at least 70% Russian piping.

Pipelines to deliver Russia's vast oil and gas reserves to consumers across Eurasia are currently a hot topic, with two - one under the North Sea and another one from Siberia to the Pacific Ocean - already under construction in multibillion-dollar projects.

"Our initiative is due to a complicated situation on Russia's pipe market, which is characterized by a lack of equal conditions for competition between foreign and Russian producers," the Russian Pipe Industry Development Foundation's head Alexander Deineko said.

Deineko said his organization's move was aimed at projects like the East Siberia-Pacific Ocean pipeline, which will supply countries in the Asia-Pacific region, as well as the Shtokman gas field off Russia's Arctic coast, which holds an estimated 3.2 trillion cubic meters of natural gas and 31 million metric tons of gas condensate.

Earlier, the Economic Development and Trade Ministry said it was preparing a protectionist resolution because imports of large-diameter pipes, according to the data from the foundation, had grown almost 50% in 2004, while domestic sales had risen only 8%.

The ministry said it had looked into the import situation following a request from Russia's Pipe Industry Foundation, and found that pipe imports had grown in recent years. Prices for domestic pipes increased faster than those for foreign-made pipes, substantially retarding sales of Russian pipes, the ministry said.

Deineko said Russian pipe companies would be able to satisfy all their clients' demands.

"We have no doubt at all that we are capable of fully satisfying the demands of our clients," he said. "Our pipes will be enough for new projects, for the replacement of old pipes and for modernization of existing capacities."

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