OREANDA-NEWS  On 02 October was announced, that the Antimonopoly Committee of Ukraine (ACU) recommended to Cherkasy-based Azot (PFTS: AZOT), Rinveazot (PFTS: RAZT) and Severodonetsk Association Azot to set the economically justified prices for ammonium nitrate.

According to the ACU data, these companies increased prices for their ammonium nitrate in the domestic market in December 2007-April 2008, however, this price rise did not correspond to the costs increase borne by these companies in producing this type of chemicals.

The companies explained to the Committee that the reason why they increased their profit margins was the necessity to compensate their expenses related to reconstructions, which was required to preserve their competitiveness amid growing prices for natural gas.

According to Yury Kravchenko, first deputy minister of the ACU, the Committee also plans to check the grounds for price setting by intermediaries in the ammonium nitrate sales chain.

Alexander Turchinov, the first vice-prime-minister, requested from the Ministry for Industrial Policy and Ministry for Agrarian Policy to develop a stabilizing arrangement between the fertilizers producers and the Cabinet of Ministers by September 30.

We would like to remind the reader that in early September the Ministry for Agrarian Policy suggested to cut profit margins for fertilizers producers.

It should be said that despite in September 19-26 cut of minimal prices for ammonia nitrate by 7.7%, the Ukrainian fertilizers still remain more expensive than Russian.