OREANDA-NEWS. On July 24, 2007 FosAgro announced cancellation of its August apatite concentrate supply to JSC Acron in a message on its corporate website. According to FosAgro, the delivery was cancelled because Novgorod-based Acron did not send an order for apatite concentrate to be shipped in August, reported the press-centre of Acron.

Acron officially states that it sent FosAgro an application on July 9, 2007 for August delivery of 40,000 tonnes of apatite concentrate. The order was made in full compliance with the terms and conditions of the five-year contract between the two companies dated December 28, 2006. Acron has the successful transmission report confirming that the order was received. In addition, this particular order was verbally confirmed by a FosAgro executive. Faxing of orders and time schedules is provided for under the contract and has been practiced by the parties in the past. All of Acron’s previous faxed orders and time schedules were received by FosAgro without problem.

In light of these facts, FosAgro’s refusal to approve the time schedule for the August 2007 apatite concentrate shipment proves that the monopoly producer is intentionally and groundlessly reneging on a contract executed under court decision. Acron views this action as an abuse of FosAgro’s dominant position in the commodity market.

Acron has filed requests with the Federal Antimonopoly Service and the prosecutor’s office seeking to officially prohibit JSC Apatit and CJSC FosAgro AG from withholding supplies of apatite concentrate.