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Acron Group Announces Price Cap for Mineral Fertilisers Sold to Russian Farmers

In pursuance of the Cooperation Agreement, signed between the Russian Fertilisers Producers Association and Russian Agro-Industrial Association with the aim to meet the demand of domestic farmers in 2008 through 2012, companies of Acron Group are setting price cap for their mineral fertiliser sales to Russian farmers.

Until the end of 2008, price cap for mineral fertilisers is set at the level of the current market prices, i.e. RUB 3,122 per tonne of ammonium nitrate; RUB 5,202 per tonne of urea; RUB 8,130 per tonne of NPK 16:16:16*.

The price cap will be raised for H1 2009 to RUB 5,000 per tonne of ammonium nitrate; RUB 7,700 per tonne of urea; RUB 10,200 per tonne of NPK 16:16:16*.The higher price cap effective January 1, 2009 is due to upcoming increase in the cost of raw materials and other expenses.

Acron believes that against the backdrop of highly volatile financial markets clear and predictable sales policy is vital. Price cap will allow Russian Farmers to plan and manage their costs efficiently.

* In bulk; price basis – FCA, VAT exclusive