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Russia seems to have come up with a know-how to convert excess cheap gas into foreign currency by selling nitrogen fertilizers to Ukraine, while the last four seeding campaigns saw the accelerated seizure of the Ukrainian market by Russian producers of nitrogen fertilizers, which resulted in serious losses and damage to the Ukrainian economy and industry, Dzerkalo Tyzhnia weekly wrote.
The authors argue that the worsening trend of Russian producers of nitrogen fertilizers capturing the Ukrainian market was never a secret for Ukrainian high-ranking officials.
The publication cites data from the anti-dumping investigation by the Ministry of Economic Development and Trade of Ukraine from 2016, which states that as early as 2015, Russian exports grew by 45.8%, and in the first half of 2016 - by 40.5%.
Read alsoUkraine's spring sowing cost up $3.892 bln in 2017Because of the dumped prices set by Russian exporters, Ukraine’s producers were forced to sell their product below cost price in order to keep their share in the domestic market.
In December 2016, the economy ministry formally recognized the need to apply anti-dumping measures in relation to Ukraine’s imports of nitrogen fertilizers from Russia, stressing the importance of such measures for national interests.
However, the authorities set extremely modest rates, and for some reason postponed the entry into force of their decision for 60 days from the date of its publication. But most importantly, the Ministry of Economic Development and Trade reported on its website that “in the near future” an appeal will be sent to the agriculture ministry to suspend the measures for their further consideration even before the decision comes into force.
The authors of the piece draw attention to the fact that, despite a long investigation, which confirmed that, in case of delay with a response, the loss of enterprises of the whole industry would be imminent (in 2013, Ukraine was among the world's TOP10 exporters of nitrogen fertilizers and provided for 8% of the country's GDP), government officials continued their support for Russian producers.
Read alsoDe-monopolizing Ukrainian market: Kyiv to introduce duties on imports of Russian fertilizersAs a result, on February 13, 2017, a commission of 14 high-ranking government officials led by First Deputy Prime Minister of Ukraine, Minister of Economic Development and Trade Stepan Kubiv, generally admitted with their decision that Ukraine cannot do without the Russian price-dumping.
Unlike Russian companies, whose operations were greenlighted in Ukraine, domestic producers do not fill the Russian budget, to further fueling Moscow’s hybrid war against Ukraine, the authors say. "Are any additional arguments needed in this regard?" the article concludes.