Consider the possibility of granting a commodity loan to domestic producers of nitrogen fertilizers in the form of natural gas at the level of 1.25 billion cubic meters for six months (from November 2021 to April 2022) from the reserves of "Naftogaz of Ukraine" - with such a proposal leading agricultural associations and the chemical industry representatives appealed to Prime Minister of Ukraine Denys Shmyhal.

It is proposed that the loan will be granted on the following terms:

• ensuring its return by futures contracts with a period of April-July 2022;
• an obligation to supply all fertilizers produced from such gas to the domestic market at prices to be set to the prices of futures contracts.

Such a step will ensure stable production of mineral fertilizers in winter, for which gas is the main raw material. Due to the fact of significant price increase for gas over the past few months, leading European companies have already reported about a reduction in fertilizer production.

"The consequence of these events is the formation of a mineral fertilizers shortage at the European and global markets. At the same time, Ukraine meets its own needs in mineral fertilizers mainly through domestic production. Based on current predictions, to ensure agriculture in Ukraine for the period of spring field work requires the supply of 2.3 million tons of nitrogen fertilizers during November 2021 - May 2022, of which 75% is expected from domestic production and 25% - from imported supplies,” is mentioned in the statement to the Prime Minister.

Such an initiative is possible, because, according to the company “Naftogaz of Ukraine”, underground natural gas storages are full of gas for this year’s heating season. Taking into account the monthly gas production in Ukraine of about 770.8 million cubic meters, as of April 1, 2022, the balance of own natural gas will be sufficient for lending the industry.

At the same time, national chemical companies are ready to commit the responsibility to accept 250 million cubic meters of gas per month with the subsequent return of the used volume for the period April-July 2022.

"We also ask you to take into account that modern agriculture is impossible without the usage of sufficient mineral fertilizers. Ukraine's agricultural production conditions require mass addition of fertilizers in spring. Ukrainian farmers are two times behind the EU countries in terms of the amount of mineral fertilizers imported, which leads to soil degradation. At the same time, the deficit emergence and a significant reduction in their usage will lead to a significant decline in yields and gross production of agricultural products, as well as worsen the condition of Ukrainian agricultural lands," is mentioned in the statement.

The associations called on the Prime Minister to urgently initiate the development of a relevant decision by the Cabinet of Ministers and to instruct the Ministry of Agrarian Policy and Food of Ukraine and the Ministry of Economy together with industry associations to prepare it.

The open appeal to the Prime Minister was signed by: the UAC, Federation of Employers of Ukraine, Ukrainian Union of Industrialists and Entrepreneurs, Council of Entrepreneurs under the Cabinet of Ministers of Ukraine, Union of Chemists of Ukraine, Association “Ukrainian Agrarian Business Club”, Ukrainian Agrarian Confederation, PU “Agrarian Union of Ukraine”.