Ukraine imposes anti-dumping duty on Russian nitrogen fertilizer

19 May 2017 14:23 Source:ICIS News

LONDON (ICIS)--Ukraine's Interdepartmental Commission on International Trade (MKMT) has renewed anti-dumping measures on urea fertilizer and urea ammonium nitrate (UAN) imports from Russia, according to the country's economy ministry's website on Friday.

A duty of 31.84% will apply to imports of Russian urea and UAN with immediate effect, according to the statement.

The MKMT said a recent investigation found that imports of cheap Russian fertilizers into Ukraine was detrimental to domestic producers.

Russia supplies 80-90% of Ukraine’s fertilizer requirements.

Importing fertilizers at lower prices makes Ukrainian farmers "dangerously" dependent on their supply and unforeseen interruptions could become another tool "of aggression" Russia could use against Ukraine in the trade sector, said the MKMT.

The commission has called for Ukraine to start using alternative supply sources such as China, the Middle East and the US. These origins would have no import duty.

Stabilized AN is also being considered to be included in the anti-dumping duty.

The government had earlier cancelled an anti-dumping duty on imports of urea and UAN, which was to come into effect on 1 March for five years, at 4.19-31.48%.

The decision was reversed to stop a possible shortage of fertilizer and a sharp rise in prices in Ukraine during the peak domestic season. Domestic demand has now slowed down.

Russian producers that sell significant tonnes to Ukraine include EuroChem, PhosAgro, Kemerovo Azot and Kuibyshev Azot.

In 2016, Ukraine imported 301,379 tonnes of urea from Russia, up 54% from 195,710 tonnes imported in the previous year. Russian urea accounted for 89% of the market share in Ukraine in 2016.

For UAN, Ukraine imported 174,828 tonnes from Russia in 2016, up 24% from the previous year. Russian UAN accounted for 66% of the market share in Ukraine in 2016.

By Deepika Thapliyal