AMC has decided to forcibly separate the Firtash group of companies

АМКУ решил принудительно разделить группу компаний Фирташа

A meeting of the Antimonopoly Committee of Ukraine

Forced separation should be held within nine months from the date of receipt of the decision of the Antimonopoly Committee.

The Antimonopoly Committee of Ukraine adopted a decision to forcibly divide a group of companies Ostchem businessman Dmitry Firtash in terms of nitrogen fertilizer and fine NF trading Ukraine 107 million. It is reported by Interfax-Ukraine on Thursday, 5 September.

“For violations to entities PJSC Severodonetsk Azot PJSC Azot PJSC Rivneazot to apply the forced separation that must be accomplished within nine months from the date of receipt of the decision,” read the head of AMKU Yury Terentyev productive part of the business at the meeting of the Department.

The Committee found that these companies, and wholesale trading company NF trading Ukraine abuse of monopoly (dominant) position on the market is the primary realization of mineral nitrogen fertilizers in 2014-2017

According to Terentyev, the violation of the legislation on protection of economic competition recognized systematic resale within the group at inflated prices of natural gas, which is the main raw material for production of fertilizers, which led to the establishment of unjustified costs of production and, consequently, to an overestimation of the costs of fertilizers.

Another violation as noted Terentyev, is to stop factories from March to June 2017 (the season of spring field works) production of nitrogen fertilizers, which led to a failure to supply goods to farmers. “The reason” to stop the plants became conscious of the lack of payments for gas supplies and even neistrebima already paid by the group’s gas storage facilities. At the same time with buyers had taken advance payment for the production of fertilizers,” – said the head of the AMC.

He added that since the implementation of the fertilizer outside the group occurred via trading company NF trading Ukraine, that imposed on it is possible in accordance with applicable law a fine in the amount of 107 million USD.

“The ACU believes that if the three major domestic manufacturer of mineral nitrogen fertilizers competed among themselves and did not act as one entity – the group Ostchem established abuse would be impossible,” – said Terentyev.

Therefore, according to him, given the duration and materiality of the violation, its negative impact on the agricultural market of the state and to effectively prevent the abuse of monopoly power to the plants sanctioned in the form of forced separation, which should be held within nine months from the date of receipt of this decision.

We will remind, in July, the AMC began considering the case on violation of 18 regional gas law On the protection of economic competition. They all belong to the RGC group of Dmitry Firtash.