European Union maintains anti-dumping duty on Russian ammonium nitrate

| Foreign Markets |

The European Commission has taken an important decision for the EU manufacturers of fertilizers. The step is to extend the period of validity of the anti-dumping duties on ammonium nitrate imported from the Russian Federation. Over the next five years, there will be a duty of 47 EUR per ton of ammonium nitrate. The reason of this decision is the need to protect the European chemical industry from the negative results of the importation of fertilizers from the East.

Anti-dumping measures are indispensable

The regulation was issued on September 23rd 2014 in response to the request submitted in March 2013 by Fertilizers Europe, which represents the major fertilizer manufacturers in Europe. Grupa Azoty is a member of the Association.

In the application, the authors warned that the expiry of the anti-dumping duties would bring about a real probability of dumping activities, which may harm the EU economy as a whole in the long term. The representatives of Fertilizers Europe are confident that the protection of the fertilizers’ market is indispensable as long as the Russian authorities vary the pricing of natural gas, selling it at an attractive price to domestic manufacturers and offering the resource to EU clients at a price which is a few times higher.

Unfair competition

Marek Kapłucha, the Vice Chairman of the Board of Grupa Azoty and the Vice President of Fertilizers Europe, commented on the European Commission’s decision. In his opinion, the Russian policy of dual pricing helps their fertilizer manufacturers to keep the cost of production low. This constitutes an act of unfair competition, and this is why the Association takes measures to influence the EU legislation on duties. The decision of EU authorities is crucial both for Grupa Azoty and all the remaining manufacturers of fertilizers in Poland.