Spetsstal Association and Magisters Protect Interests of the Suppliers and Consumers of Special Steel and Alloys

On April 6, 2009 the Russian-based Spetsstal Association announced establishment of the Coalition Against the Anti-Dumping Investigation. The Coalition will unite suppliers and consumers of special steel with the aim of protecting their interests jeopardized by the current anti-dumping investigation.

The investigation is carried out in respect of the import of flat rolled nickel-containing stainless steel from Federal Republic of Brazil, the People’s Republic of China (including Taiwan), the Republic of Korea and the Republic of South Africa to the Russian Federation.

Magisters has been appointed as the exclusive legal advisor to Spetsstal Association within the framework of this investigation. The Firm will represent the interests of the Coalition and will assist the Association in demonstrating that the claims made by Russian manufacturers (Krasniy Oktyabr Volgograd Steel Plant OJSC, Chelyabinsk Steel Plant OJSC and the Serp i Molot Moscow Steel Plant OJSC) are unfounded.

Andrey Voronin, Executive Director of Spetsstal Association says that "any restrictions on import of high-quality stainless steel products will result in direct losses to Russian consumers – which are new to the current Russian manufacture of import-substituting products".

According to the expert analysis of Spetsstal Association, imported flat rolled stainless steel became an integral part of the domestic consumer market a long time ago. Russian manufacture of flat rolled stainless steel constituted just 55.5 thousand tons in 2008; 4.6 tons were exported. At the same time, the import volume constituted approximately 120 thousand tons.

"As in the past, Russian manufacturers of flat tolled stainless steel are focusing their efforts on the Soviet consumption nomenclature and product quality system. Outdated principal and auxiliary equipment do not permit cost-effective production of competitive products under present-day conditions. As a result, we have a very modest volume of domestic production, insignificant export volumes and a large share of imported products in the total consumer volume", adds Andrey Voronin.

"Construction projects such as the Winter Olympics in Sochi – 2014, shopping centers, airports, subway stations, food and processing equipment, medical instruments, modern passenger railway carriages, consumer goods and household appliances – all of these sectors are united by the necessity of using high-quality stainless steel products", comments Oleg Riabokon, Partner, Head of International Trade & Customs Practice at Magisters.

"Russian manufacturers are unable to satisfy consumer demand for high quality products and, therefore, would prefer to fight with the alleged dumping. The introduction of obstructive anti-dumping duties, particularly on products which are not manufactured in Russia, will lead to an increase in expenses within the framework of the budgets approved by the Russian Government. For this reason, we will participate in the investigation and do our best to protect the interests of Russian stainless steel consumers", adds Oleg Riabokon.

Spetsstal Association

The Association of consumers and suppliers of special steel and alloys (official abbreviated name – Spetsstal Association) was established in 2006 for the popularization of the application of stainless and special steel and alloys in various branches of industry as well as the construction industry. The Association unites 17 companies, including Volgo-Viatskoye Promishlennoye Snabzheniye, RusSpetsStal, ESTAR MC, Zlatoust Metallurgical Works, Nytvenscy Metallurgical Works ‘Nytva’, Novosibirsk Metallurgical Works named after Kuzmin, PCF Germes, VSMPO-AVISMA Corporation, Special Steels and Alloys Co., Kontinental, Mercury-Metal-Group Trade House, Agis Stal, DneprStalServis, MV Group, GlobalSteel, Ileko LLC and Stalnoy Supermarket LLC. More detailed information is available at www.ussa.su.

About Magisters

Magisters is a full-service international law firm advising clients in the CIS and worldwide. Magisters currently employs over 220 people, 120 of whom are lawyers, including 12 partners. Magisters is a recognized leader in banking and finance, corporate and commercial law, dispute resolution, international trade, real estate, and tax law. Magisters has offices in Astana, Kyiv, Minsk and Moscow, and the representative office in London.

More information about the firm can be found at www.magisters.com

For further information, please contact:

- Kobylinskaya Julia, Communications Manager, Magisters, +7 495 730 2320, jkobylinskaya@magisters.com

- Voronin Andrey Aleksandrovich, Executive Director, Spetsstal Association, +7 495 747 59 95, av@ussa.su