Chemical industry expects benefits for transportation following metallurgical and coal companies

The largest Russian producers of nitrogen and potash fertilizers Uralchem and Uralkali have asked the Government to cancel the increased tariff for export rail transportation. Allowance of 13.4% was introduced in late 2014 and was compensated for exporters with the weakening of the ruble. But since then, the price of fertilizers fell by 40-50%, while the share of transport costs in the expenditures increased significantly. It will be difficult for Russian Railways to refuse, because the monopoly has already made similar concessions to coal and ferrous metals producers.

As the Kommersant has got to know, on Friday, the producers of mineral fertilizers Uralkali (the largest shareholders are Uralchem and Onexim) and Uralchem (the main owner is Dmitry Mazepin) sent a letter to the Deputy Prime Minister Arkady Dvorkovich about railway tariffs. The companies ask the Government to cancel the additional indexation of Russian Railways in the amount of 13.4% on export rail transportation of fertilizers and ammonia. The chemical companies insist on the monopoly doesn’t require conservation in traffic at the level of 2015, since the demand for fertilizers is seriously reduced. As sources on the market reported to the Kommersant, a similar letter to the Government will by sent by the Russian Association of producers of mineral fertilizers this week. Russian Railways doesn’t comment on the situation.

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