“There is no reason for quotas introduction for nitrogen fertilizers import to Ukraine. The statement about chemical enterprises which operate at a loss is of whack with reality.” – the UAC Deputy Chairman Mykhailo Sokolov mentions.

According to the Antimonopoly committee of Ukraine investigation, till 2017 the company group “OstChem” (the owner was Dmytro Firtash and he had the biggest nitrogen fertilizer factories in Ukraine) had great losses which were fiction. The company group “OstChem” had their profit through the gas supply pattern for high prices. According to the Ministry’s for Development of Economy, Trade and Agriculture of Ukraine conclusion, from 2016 production prices became higher, but outgoings became lower. Therefore, profit should increase. Also, accounts, which were made at the base of “OstChem” opponents public data, shows that its profitability is about 40%.

Besides, as experts mention, we can’t make any judgments about quotas introduction according to 2016-2018 base results, because in 2019 embargo on all Russian fertilizers was introduced. That is why market conditions changed a lot: the company group “OstChem” extents increased a lot. We can’t affirm that factories are in crisis now.  

“That is why quotas introduction in present conditions - it means to take money from agrarians’ pockets and put them into Dmytro Firtash pocket. He will get an opportunity to modernize his factories and increase companies’ profit. At the same time, Antimonopoly committee of Ukraine and “Reiters” investigation shows that because of high prices Firtash has got a few billion dollars. So, he has money to make a modernization. If he runs off with his money, it’s time to enforce decision of Antimonopoly committee of Ukraine - to sell one of its factories to an independent company.

But, the Ministry doesn’t listen to the agrarians’ arguments and doesn’t want to revise their opinion. Because of such conditions, in fact, agrarians have no choice but to gather at the protest campaign and advocate for their rights. Last week we made preventive protest campaign at seven regions of Ukraine. Tomorrow agrarians are going to protest near Cabinet of Ministers of Ukraine and the President’s Office.” – Mykhailo Sokolov mentions.

There is also a political aspect in this case. Quotas introduction for fertilizers import can exacerbate relationships between Ukraine and countries, who support us. Decision about penalties continuation or termination against Russian Federation depends on these countries. Therefore, the cost of pursuing a policy in the interests of the oligarchs can be disproportionately high - the expert says.