Rus News Journal

Fertilizers have let out abroad

Export duties on minudobrenija the prime minister will be nulled

Yesterday - the minister of Russia Vladimir Putin has charged to make during the day the decision on cancellation of export duties on minudobrenija. Duties are entered less than year back, but from - for sharp reduction in demand and the prices on minudobrenija in the world and internal markets now they became an additional burden for agrochemists. According to the experts, against easing of rouble it will help the Russian agrochemists to work again in profit.

export duties (5 % for potash fertilizers and 8,5 % for nitric and mixed) have been entered in April of last year to bridle a rise in prices for this production (and accordingly, on the foodstuffs) in home market. However, already then manufacturers minudobreny noticed that offered measures will not lead wished and thus will provoke delay of rates of development of agrochemical branch as more than 80 % of fertilizers were exported from - for insufficiency of internal demand.

yesterday the prime minister - minister Vladimir Putin has charged to the ministries and departments during the day to co-ordinate and make the decision on zeroing of export duties on minudobrenija. Acting at session of presidium of the government, he has declared: Let`s consider today and we will accept - quotes its RIA. The corresponding offer was brought by Minpromtorg after held by Vladimir Putin in Monday of exit meeting on Akron . As Minpromtorga Denis Manturov has noted then zamglavy, cancellation of export duties on minudobrenija should be considered not as a measure is customs - tariff regulation of the foreign trade activity, and as a measure of the state support of branch.

About cancellation of export duties on minudobrenija manufacturers stood up since the moment of their introduction. But supports at officials did not find, on the contrary, up to autumn of last year the government was ready to consider possibility of their increase, and even at all introductions of quotas for export minudobreny. Meanwhile crisis has put branch in catastrophic position. According to Rosstata, manufacture minudobreny in November, 2008 has decreased on 51,6 % in relation to the last month, thus that as a whole across Russia promproizvodstvo has fallen only to 10,8 %. According to the Russian association of manufacturers of fertilizers, the prices for mineral fertilizers in the world markets in the fourth quarter 2008 have decreased in three - four times. In the end of December, 2008 almost all Russian agrochemists ( Akron Fosagro evrohim Uralhim Uralkaly Silvinit etc.) Have got to the governmental list of the backbone enterprises and have not failed to use possibility besides other measures of support to ask about cancellation of export duties.

however, in exchange the government intends to watch satisfaction of internal requirements in minudobrenijah. Cancellation of export duties will not mean at all decrease in deliveries to home market - the representative " speaks; evrohima Vladimir Torin.

According to Michael Stiskina from Three Dialogue actually the authorities have accepted earlier put forward by manufacturers minudobreny conditions: the low prices and sufficient volumes of deliveries for the Russian agricultural manufacturers in exchange for a soft mode of regulation of export. By its estimation, cancellation of duties, in particular for manufacturers of potash fertilizers, in 2009-2010 can provide gain EBITDA on 4-5 %, and the most notable effect can receive Akron - For it cancellation of duties can give gain EBITDA on 15 and 13 % accordingly.

cancellation of duties hardly will lead to the big losses of the budget. According to customs, in January-November, 2008 the volume of export deliveries minudobreny was estimated approximately in 10,5 mlrd dollars, thus the state should receive for eight months of action of the duty about 610 million dollars In 2009, considering essential falling of the prices on minudobrenija, custom charges would be reduced in times.