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Statement of JSC Acron

Acron’s management has released its reaction to a false statement by PhosAgro Group indicating that Acron refuses to uphold its apatite concentrate supply contract with Apatit.
In early August 2008, Acron submitted to Apatit and its managing company, PhosAgro AG, a voluntary proposal to increase to RUB 2,800 per tonne the apatite concentrate price under the long-term contract. Under the terms of the court-ordered contract, both parties must agree to any price increase. The price increase proposed by Acron was to take effect January 2009.
Apatit ignored the proposed price increase for four months, and Acron notified the company when the proposal expired on November 17, 2008. Now, significantly after the fact, the monopoly supplier has reversed its position and states that it wants to go along with Acron's expired proposal.
Alexander Popov, chair of Acron’s Board of Directors, commented on this move by Apatit:
“The monopoly is playing games because it is not willing to comply with court rulings forcing it to supply apatite concentrate to Acron under a direct long-term contract. The current price for apatite concentrate under this long-term contract is RUB 2,232 per tonne and may be revised if both parties agree to the change. At this point, Acron does not see any objective reasons to revise the price after January 1, 2009.
"Although the courts, including the Presidium of the Russian Supreme Arbitrazh Court, have upheld the conditions of this contract, the monopoly is still looking for excuses to keep from supplying us because we are an independent consumer. Their cynicism is absolutely appalling. Unfortunately, PhosAgro frequently resorts to cheating, misleading, and provoking its consumers amid a lack of any decisive measures by the Russian Federal Antimonopoly Service.”