Chemical Losers Russian Eurochem Lost 25 Million Due To Ukrainian Sanctions

EuroChem, one of the world’s largest producers of mineral fertilizers, 90% of which belongs to Russian oligarch Andrey Melnichenko, reported a loss of $ 25 million, due to the sale of two distribution companies in Ukraine, Interfax wrote.

Such a decision the company made as a result of a number of prohibitions that were adopted by the Ukrainian authorities: in particular, the ban on the import of certain products from Russia, as well as the imposition of sanctions against a large number of Russian suppliers.

In May, after imposing sanctions against EuroChem and its subsidiaries, “Agrocenter Eurochem-Ukraine” and “Agrocenter Ukraine”, the company decided to quit working in Ukraine and by the end of the month, sold both companies to unrelated parties for $ 53 million. The fee is payable in 5 years, the discounted cost was $ 29 million. Net assets of the sold companies exceed this amount and are estimated at almost $ 55 million.

Earlier it was reported that Ukraine increased duties on imports of Russian mineral fertilizers to 42.96%.

In 2017, the annual revenue of Agrocenter Eurochem-Ukraine was 6.67 billion UAH, and net profit was 161.22 million UAH, making the company one of the top 100 largest Ukrainian enterprises.

According to Alisher Atarbayev, deputy director of TransHimTrade, the deficit of complex fertilizers in Ukraine in autumn fall will be 25-30%, and ammophos — 50%.

Dmitry Gordeychuk, director of the “Info-Industry” informational agency, in turn, said that against the backdrop of the domestic deficit of fertilizers, the rise in price on the world market will certainly lead to an increase in fertilizer prices before the autumn sowing by at least 50%. To prevent a deficit of mineral fertilizers in the Ukrainian market and to restrain price fluctuations, the “Agrarian Fund” started selling agricultural fertilizers to Ukrainian farmers on August 1.