Kolomoisky and Firtash may lose their monopoly on fertilizers in the Ukrainian market.

by Editor • 09.12.2015 • 0 Comments

The adoption by the Verkhovna Rada of new bill 2558, which abolishes 22 permitting procedures, will simplify work for farmers and simultaneously undermine Dmitry Firtash's monopoly on the Ukrainian fertilizer market.

According to Marian Zablotsky, deputy chairman of the Ukrainian Agrarian Association, Igor Kolomoisky will also lose money on this, with losses amounting to between $50 and $260 million per year.

According to Zablotsky, oligarch-controlled deputies did not support the bill. However, a total of 237 MPs voted in favor. Zablotsky clarified that Ukrainian farmers will soon feel the impact of this change when they can purchase fertilizers not only from Ukrainian but also from Russia.

On May 28, Group DF announced the shutdown of Cherkasy Azot and Rivne Azot. The reason cited was attempts to pressure businesses by People's Front deputies. A year earlier, operations at Concern Stirol and Severodonetsk Azot Association, both located in the ATO zone, were suspended due to military action.

Thus, only four of the six companies belonging to the Ostchem Group, which was involved in a lawsuit filed by Gaz Ukrainy this year, currently produce ammonium nitrate and UAN in Ukraine. According to the lawsuit, the company received UAH 5,7 billion worth of gas in 2010-2011 and has yet to pay for it. Later, the company's gas, stored in Ukrtransgaz PJSC storage facilities, was seized by a court decision.

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