Producers Defended Quotas for Fertilizer Import in the Court
In June 2020, the Interdepartmental Commission on International Trade decided to abolish any quotas for the import of nitrogen and complex fertilizers into Ukraine. However, this decision was not supported by local manufacturers. Fertilizer companies appealed to the District Administrative Court of Kyiv to overturn the decision of the ICIT, and they got their way.
In accordance with the resolution of the District Administrative Court of Kyiv dated March 31, 2021, quotas for the import of fertilizers from abroad should be preserved. This decision was made on the basis of a statement of claim from the Azot company (Cherkassy), which is part of the Ostchem holding. This decision was announced by the press service of Group DF.
The press service said that the court ruled to recognize the decision of the ICIT as unfounded. The investigation that led to the decision to abolish quotas was pending. The plaintiff appealed to the fact that such decisions contradict the state interests of Ukraine, and that serious violations were committed during the adoption of the resolution of the ICIT.
Also, it is reported in the press release that in the statement of claim, the company indicated that the investigation of the ICIT was unreasonably extended, and then an unreasonable and unsubstantiated decision was made. Thus, the Commission ignored the recommendations of the Ministry of Economy and the data of the investigation.
After the cancellation of the decision to lift quotas, the ICIT has 30 days to file an appeal.
Vice-President of the “Union of Chemists of Ukraine” Ihor Golchenko considers the court decision an important step for the development of the industry. According to him, the decision of the ICIT was made under pressure from importers-traders who held rallies under the government building. The expert believes that the import issue remains open.
Golchenko insists that uncontrolled fertilizer imports are hurting the country's balance of payments and negatively affecting the chemical industry. According to the vice-president of the “Union of Chemists of Ukraine”, the association fully welcomes this decision and considers it timely. Golchenko is convinced that the chemical industry still needs protection. It is especially important now, when companies are implementing large investment projects to improve their competitiveness in world markets.