Russia beat Ukraine dispute in the WTO on duties on fertilizers

© AFP 2018 / Fabrice CoffriniШтаб-apartment world Trade Organization in Geneva, Switzerland. Archival photoRussia beat Ukraine dispute in the WTO on duties on fertilizers© 2018 AFP / Fabrice Coffrini

Arbitration by the world trade organization (WTO) upheld most of the requirements of Moscow’s claim to Kyiv about duties on ammonium nitrate produced in Russia, the documents of the WTO.

«The Tribunal has decided that the Ukrainian authorities had violated article by denying Russia’s recognition of gas prices for Russian producers (of ammonium nitrate. — Approx. ed.) and not providing adequate explanation for the decision», — stated in the documents. Ukraine has made its own adjustments when calculating domestic prices for gas in Russia, says the WTO.

The arbitral Tribunal also supported the Russian claim that the Ukrainian authorities acted «inconsistent» to include in the main trial private company «EuroChem», the difference between domestic and export prices which were minimal.

Ukraine in July 2014 more than tripled import duties on ammonium nitrate from Russia (up to of 36.03% from 11.91%) and established for them a five year validity. This decision was made based on the application of Ostchem enterprises, part of a financial-industrial Group DF of Ukrainian businessman Dmitry Firtash. They appealed to the fact that the price of gas for Ukrainian nitrogen plants chemistry and Russian producers is significantly different.

Russia filed a lawsuit to the WTO in may 2015, saying that the duty of Kiev to violate the antidumping agreement of the WTO. The main claim of Russia was the fact that Kiev has used unfair methods of adjustments, underestimating domestic prices for gas which the Russian company was acquired for the production of ammonium nitrate.

Ammonium nitrate (ammonium nitrate) is used as a component in explosives and as a nitrogen fertilizer.