June 17 2004, 09:20 Interfax-Ukraine

Ukraine not to limit fertilizer import - Chemists Union

Ukraine will not tax or limit fertilizer import because of ammonium nitrate and phosphorate fertilizers import has significantly decreased for past year. According to Director Executive of Ukrainian Chemists Union Ivan Novikov, for May 2003- May 2004 import of ammonium nitrate to Ukraine declined in three times and phosphorate fertilizers import decreased in two times compared with past years data. He explained this by introduction of partial compensation for fertilize costs of Ukrainian origin to farmers from the state budget.

Since May 2003 Ukraine has started controlling for ammonium nitrate and phosphorate fertilizers import. This decision was adopted to study the situation caused by an investigation.

As it was reported before, Interdepartmental Commission for International Trade and Eurointegration of Ukraine in December 2002 started a special investigation on ammonium nitrate import of any origin to the country.

According to the Chemists Union of Ukraine, for 2001 ammonium nitrate import to Ukraine increased by 2,283 percent compared with 1999, but its average custom price decreased only by 8 percent. Russia exports to Ukraine about 90 percent of ammonium nitrate; and the share of Russian ammonium nitrate on the Ukrainian market is 25 percent.

On January 14, 2004 the Cabinet of Ministers set the reparation of ammonium nitrate cost from the state budget to farmers at 100 hryvnias per a tonne. Besides, reparation of carbamide cost was set at 130 hryvnias per a tonne, ammonium water - at 70 hryvnias per a tonne, superphosphate - at 130 hryvnias per a tonne, complex mineral fertilizer - at 200 hryvnias per a tonne.