Group DF nitrogen enterprises continue protection of national fertilizer market from unfair competition

Three nitrogen enterprises of Group DF (part of Ostchem holding), – Azot PJSC (Cherkassy), Severodonetsk Azot Association PJSC (Lugansk region) and Concern Stirol PJSC (Donetsk region) – have applied to the Ministry of Economic Development and Trade (MEDT) on the beginning of anti-dumping investigation regarding dumped imports of urea and urea ammonium nitrate from the Russian Federation.

Interdepartmental Commission on International Trade of Ukraine (ICIT) took a decision to start  anti-dumping investigations regarding two types of fertilizers – urea and urea and ammonium nitrate mixture in aqueous or ammoniac solution (3102 10 and 3102 80 00 00 codes according to Ukrainian Classification of Goods for Foreign Economic Activity) on the basis of evidence, provided by the enterprises.

“Our enterprises have initiated anti-dumping investigation on UAN and urea since the dumped imports of these products from the Russian Federation to Ukraine started to grow substantially. After the introduction of protective duties on ammonium nitrate, the Russian producers and importers started delivering nitrogen fertilizers, actively substituting ammonia nitrate. In addition, current duty on Russian ammonium nitrate at a rate of 36.03% doesn’t fully work effectively, because  ammonium nitrate is still being delivered under different custom codes. Ammonium nitrate is also imported into the ATO territory, unpaying duties, said Igor Golchenko, Head of Compliance at Group DF. – We understand that the MEDT procedure of anti-dumping investigation will last long enough, but we are ready to wait. In the case of a positive decision not only Group DF’s companies, but other enterprises of the sector, such as Dniproazot and state-owned Odessa Port Plant will benefit from it”.

In 2014, Ukraine has increased the protective duties on ammonium nitrate, produced on the territory of the Russian Federation, three times (from 11.91% to 36.03%). In Ukraine, anti-dumping duties on ammonium nitrate are applied to Russian producers only. Access to cheaper raw material – gas – allows Russian producers to dump not only on the Ukrainian market. Such dumped imports to Ukraine impair Ukrainian chemical industry.

The anti-dumping process launched should not only provide the effect from the protective measures already taken on the nitrogen fertilizer market, but will make the Ukrainian market more attractive and competitive for importers of fertilizers from the EU and other countries.