Ru En

European Commission Lifts Duty on Acron and Dorogobuzh Ammonium Nitrate Imports

On the 13th of July, the European Commission passed a resolution lifting its anti-dumping duty on the importation of ammonium nitrate produced by JSC Acron and JSC Dorogobuzh. The established quota remains in force.
The Commission instituted its anti-dumping measures against Russian ammonium nitrate producers in 1996, at which time Russian companies were accused of dumping and illegally increasing their exports. In light of the fact that prices for natural gas, the main raw material for producing ammonium nitrate, were much lower in Russia than in Europe, the European Commission adopted a resolution favouring EU fertilizer producers by establishing an additional duty on ammonium nitrate imported from the Russian Federation. At the time it was lifted, the duty was €47 per tonne.
In 2005, Acron and Dorogobuzh requested that the European Commission consider lifting the anti-dumping measures against them. At the end of 2006, the European Commission started an investigation that lasted for about a year. Experts repeatedly inspected the businesses, studied the relevant documents and conducted hearings. Throughout the period the Ministry of Economic Development and Trade of the Russian Federation provided comprehensive support for Acron and Dorogobuzh. The European Commission subsequently reached a positive resolution as a result of the considerable efforts by both sides,
At the end of 2007 an interim resolution was passed entitling Acron and Dorogobuzh to propose a unilateral covenant to sell ammonium nitrate in EU countries duty-free, with agreements on pricing and quantity. On the 30th May, 2008, the European Council voted to approve the covenant, and on the 13th July the resolution changing the regulations governing the importation of ammonium nitrate into the European Union entered into force.
Alexander Popov, Chairman of the Acron Board of Directors, commented on the situation: “We expected this and are pleased with the fair resolution of the issues by the EU Council. We consider it a historical decision for our company, which has both maintained its position and managed to underline the fact that removing the duty will not damage European producers. Acron has demonstrated that it is an important and active participant in the European mineral fertilizer market and is capable of defending its interests.”