UAC, together with leading agrarian associations - the Ukrainian Club of Agrarian Business (UCAB), the Association of Farmers and Private Landlords of Ukraine, the Association of Producers, Importers and Traders of Agrochemistry – upholds the Interdepartmental Commission on International Trade decision to stop specialized investigation on nitrogen and complex fertilizers import to Ukraine without special measures usage.

In a joint statement, the agricultural associations remarked the unprecedentedness of such a step, which consolidates the course of demonopolization of the chemical industry. They also expressed special gratitude to the President of Ukraine, members of the ICIT, ex-Presidential Commissioner for Land Affairs Roman Leshchenko, People’s Deputies, the Chairman of the Agrarian Committee Mykola Solskii.

Also, farmers call on the Cabinet of Ministers of Ukraine and the Antimonopoly Committee of Ukraine to multiply efforts to demonopolize the local chemical industry, implement the AMCU's decision to divide forcibly the company group “OstChem” and, as a result, to create the necessary basis for the revival and development of the Ukrainian chemical industry.

Full text of the statement:

Statement of the agro-industrial complex associations of Ukraine on the termination of the special investigation of the nitrogen and complex fertilizers import to Ukraine

We accept the decision of the Interdepartmental Commission on International Trade to terminate the special investigation into the nitrogen and complex fertilizers import to Ukraine, without special measures usage.

For the first time, we see an unprecedentedly different quality of public policy, and top-level government decisions are made in public debates, clearly, fairly and objectively, rather than as a result of backroom agreements with oligarchic influence groups. 

The decision, made by the ICIT, establishes a course for demonopolization of the chemical industry, which was taken a year ago, after another unprecedented decision by the Antimonopoly Committee of Ukraine on the forced division of the monopolist in the fertilizers market - the company group “OstChem”.

10 years since the establishment of monopoly on the mineral fertilizers market in Ukraine made by the company group “OstChem” proved that without the restoration of healthy competition, the dynamic development of the local chemical industry is impossible. Certainly, despite of the huge profits of the monopoly owners, no production significant modernization was carried out or an innovative product was released, which naturally led to the export markets losses, and left Ukrainian farmers without quality Ukrainian products.

We express our personal gratitude to the President of Ukraine Volodymyr Zelenskii. First of all, thanks to his personal position and his policy designed to protect citizens interests, small and medium businesses, Ukrainian economy and make it out of oligarchs. It became possible to demonopolize the chemical industry and terminate a special investigation on nitrogen and complex fertilizers import.

We also thank the members of the Interdepartmental Commission on International Trade who supported the decision and consider it as a responsible state position, because each of them understood that in return it could become the object of monopolist’s ruthless criticism and attacks!

Special thanks to the People's Deputies of Ukraine, the ex-Presidential Commissioner for Land Affairs and the Chairman of the Agrarian Committee of the Verkhovna Rada, who paid considerable attention to the issue.

Ukrainian farmers are interested in the development of the national chemical industry, which will allow them to gain access to quality and inexpensive and mineral fertilizers of local production. However, previous 12 years of unsuccessful experience of protectionist measures have shown that this is impossible without the development of competition.

Therefore, we call on the Cabinet of Ministers of Ukraine and the Antimonopoly Committee of Ukraine to multiply efforts to demonopolize the local chemical industry, implement the AMCU's decision about deviding of the company group “OstChem”, than - to create the necessary basis for the revival and development of the Ukrainian chemical industry.

After implementing the necessary measures to demonopolize the mineral fertilizers production, we think it’s necessary to discuss programs about national chemical industry support and development, in order to increase its efficiency.

It should be mentioned that agro-industrial associations consider inadmissible and speculative public statements of large chemical companies about possibility to lay off of the personnel in the factories, if fertilizer quotas are not introduced. We ask the Government to take the necessary measures to prevent unjustified dismissals of employees of Ukrainian chemical companies.

Wednesday, 24 June 2020

 

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