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Refutation by Acron

PhosAgro has circulated a false report that Acron Group owes JSC Apatit over RUB 1.3 bn.

Under Acron’s current agreement with Apatit, Acron makes advance payment for all apatite concentrate supplies at a rate of RUB 3,671.36 per tonne. Apatit holds an ongoing advance equal to two apatite concentrate shipments for JSC Dorogobuzh and from two to four shipments for Acron. Acron Group’s companies have always been bona fide payers and discharge all obligations in full.

On June 15, the Arbitrazh Court of Moscow granted an injunction prohibiting Apatit from reducing and/or suspending supplies of apatite concentrate to Acron until examination of an earlier claim filed by Acron against Apatit. At present, Acron is receiving sufficient apatite concentrate supplies to continue uninterrupted operations and replenish its warehouse reserves. Dorogobuzh has received no apatite concentrate since June 5, 2012, and consequently its NPK operations have been idle.

PhosAgro’s actions can only be explained as a monopoly’s abuse of the apatite concentrate market and an attempt to dictate terms to consumers in violation of a current agreement. It is obvious that by doing so, PhosAgro is attempting to remove one of its principal competitors from the complex mineral fertiliser market. Acron Group is a major supplier of complex fertilisers to the Russian domestic market. As we approach the autumn planting season, domestic farmers may experience fertiliser shortages due to inconsistent apatite concentrate supplies to the Group’s facilities.