Tolyattiazot lost port in Taman

A large ammonia producer from the Samara Region, TogliattiAzot, will soon have to put an end to the construction of a transshipment terminal in the port of Taman. This may lead to strangulation of the enterprise in the future.
Origin source
On February 15, the Arbitration Court of the Krasnodar Territory handed over to the regional administration twelve buildings related to the port infrastructure of ToAZ: an unfinished administrative building, barracks, transformer substations, unfinished hydraulic trestles and biological treatment facilities.
The enterprise appealed against the decision, but on June 6, the 15th Arbitration Appeals Court upheld it. Now the case will be considered in the appeal court on August 29, but the prospects for ToAZ look dubious, because there are no new arguments for the company.

The history of the Toam's unfavorable Taman project, valued at $ 300 million, stretched from the beginning of the zero. In 2001, 2003 and 2004, the administration of the Krasnodar Territory leased land to ToAZ for 49 years to build a terminal for the reception, storage and transshipment of ammonia in the Temryuk district. In 2003, the deputy head of the regional administration issued to the company a construction permit valid until 2005. But already in 2004 the acts of inspections of the control and supervisory authorities revealed that the warehouse of loose materials, the radio communication tower, the two upper floors of the operational services buildings, two houses and other structures were erected without permission for construction, that is, arbitrarily. Toaz was given orders to suspend illegal construction and to grant title documents for the use of other people's land plots on which the buildings were located.

In total, officials identified 22 violations of design decisions and regulatory requirements, and in the same year 2004 the building permit was suspended. Despite the instructions of the authorities, the ToAZ autocratically continued to build in the port for several more years, but eventually the process finally decayed. In 2014, the prosecutor's office formally recognized the objects of ToAZ by self-construction, erected without permission documentation with violations of norms. The objects were transferred to the property of the regional administration, and its right to them had already been confirmed twice by the court.

In the near future, the lease agreement with ToAz should be terminated until 2052 due to the company's objective impossibility to fulfill its obligations. Probably, the new operator of the port will be the government of the Krasnodar Territory. In addition to ToAZ, its projects in the port were conducted by OOO Gazexport, ZAO Tamanneftegaz,
OOO Soyuzresurs-Kuban and others. It is possible that after the departure of ToAZ, the freed up capacities and space will be taken by other stevedores. The loss of Taman will be a sensitive blow for ToAZ, which was hoping to open an alternative export channel through the port. At the moment, almost all the ammonia exported through the unique pipeline "Togliatti - Odessa". In the past 5 years, he has repeatedly demonstrated his unreliability.

In 2012, Ukrhimtransammiak, the manager of the Ukrainian section of the pipeline, shut off the ammonia pipeline for two weeks, and ToAZ was forced to stop production and calculate losses. At the end of December 2016 around the transit of Togliatti ammonia, a conflict broke out again: Ukrkhimtransammiak refused to increase the pump quota and the transportation of the enterprise's products stopped until February 3, 2017.

In addition, after the change of power in Kiev, the price of ammonia transit has significantly increased. Under the conditions of bilateral exchange of sanctions between Russia and Ukraine, it is not necessary to count on any preferences for Russian enterprises. Now the Ministry of Finance of Ukraine is considering another increase in tariffs for transportation of ammonia. The corresponding bill has been submitted to the Verkhovna Rada, and its adoption is only a matter of time. The future of the chemical giant from Togliatti is under big question today. Attempts to find a way out of the logistical impasse led only to new losses - reputational and material. After a new increase in tariffs for the transit of ammonia by Ukraine, production of products by ToAZ risks losing all profitability. Then there will be no options, except for stopping the plant, the management will not.