The Sixth Administrative Court of Appeal upheld Judge E. V. Ablov's decision on increasing the antidumping duties on Carbamide and CAS originating in the Russian Federation, which was adopted at the request of PJSC "Azot", PJSC "Concern Stirol" and PJSC Severodonetsk Azot Association, which are part of Ostmhem companies Dmitry Firtash.

By partially satisfying their demands, Ablov, at his own discretion and without conducting appropriate judicial examinations, found that to determine the cost of the product and the anti-dumping margin, it is necessary to calculate not the price of gas in Ukraine, but in Germany.

On November 27, 2018, the sixth Administrative Court of Appeal closed the proceedings and found the Ablov’s judge to be ineffective.

Commenting on this decision, Deputy Chairman of the Ukrainian Agri Council, Mikhail Sokolov, said: "From the outset, we were talking about imposing prohibitive duties and embargo on the import of Russian nitrogen fertilizers not only illegally, but also meaningless, because it would disproportionately damage Ukraine's economy more, than Russian. So it turned out, we did not help our chemical companies, they continue to idle, and the place of Russians in the Ukrainian market is taken by suppliers from other countries. At the same time, the national consumer - Ukrainian farmers are suffering from extremely high prices - now prices for fertilizers in Ukraine are among the highest in the world and exceed the prices for them in Russian competing with us by 20-50%. "

"We are glad that our right is confirmed by the courts. However, this is only the first step. We are waiting for the results of our claims review and by the decision of the MKMT, which were also taken illegally and severely damaged the agrarian sector," he added.

Recall that enterprises of the Ostchem group in court demanded from the Ministry of Economic Development and Trade to carry out a recalculation and increase the anti-dumping duties on nitrogen fertilizers from the Russian Federation, which, according to the decision of the Interagency Commission on International Trade of 27.12.2016, were set at the level from 4.19% to 31.84% for different manufacturers.

By the Decree of the President of Ukraine on May 14, 2018, National Security and Defense Council made a decision to impose sanctions against all Russian suppliers of mineral fertilizers, with the exception of the company Mineral fertilizers (Rossosh), owned by Arkadiy Rothenberg, who acted as head of the construction of the Crimean Bridge.

According to the "Marker" agency, as of November 1, the excess of the domestic market (excluding VAT) over the price of the FOB Black Sea ammonium nitrate was $ 104.80/ton (55.01%), for urea - $ 61.20/ton (20.92%), on the urea ammonia mixture - 21.80 dollars/ton (9.81%). At the same time, the reduction of consumption of potassium and phosphorus fertilizers due to their shortage in the market by the results of 9 months of 2018 amounted to more than 31% compared to the same period last year.

OstChem holding did not pay off debts to Ukrainian agrarians for paid in 2016-2017 years, but still not delivered fertilizers. This refutes the conclusions of the Ministry of Economic Development and Trade on the reliability of the national commodity producer in the supply of goods, and indicates the inability to provide domestic market and consumer needs.

According to the UAC, the only way out of the current situation is to provide domestic chemical plants with its own raw material base. In particular, through the construction of plants for the production of mineral fertilizers from Ukrainian gas, or the sale at auction of licenses for the extraction of gas exclusively for the production of mineral fertilizers.

Thursday, 29 November 2018

 

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