EuroChem Group AG intends to leave the Ukrainian market, where he worked for 15 years. The company announced the sale of its subsidiary in this country. This was said in a statement. "Evrokhim" explains this by the decision of Kiev to introduce a temporary ban on the import of mineral fertilizers from Russia.
"The recent actions of the Ukrainian authorities to limit the supply of fertilizers by foreign companies, as well as the expectation of further deterioration of business conditions in this market, have caused this decision," the company said in a statement.
The subsidiary company was bought by the company "connected with its former management". The cost of the transaction and its terms Eurochem does not disclose.
The company also said that it intends to continue consultations with the Ukrainian authorities about future opportunities in this country through its European representation. The group itself intends to focus on other growing markets.
On March 14, the Ukrainian government supported a temporary embargo on the import of mineral fertilizers from Russia. In 2014, Kyiv also introduced five-year anti-dumping duties on imports of Russian fertilizers, which concerned ammonium nitrate.
Then in EuroChem it was reported that the total import of fertilizer companies to Ukraine is about 1 million tons. Evrokhim, in addition to the products from Russia, also supplied fertilizers from Ukraine to its enterprises in Europe.
The company also stressed that the decision on restrictions would harm Ukrainian agriculture.
EuroChem Group AG is one of the world's largest producers of mineral fertilizers. It produces nitrogen and phosphoric fertilizers, also, according to the company's website, EuroChem intends to launch the production of potash fertilizers. The head office of the group is located in Zug (Switzerland), manufacturing enterprises - in Belgium, China, Kazakhstan, Lithuania and Russia. At the end of April 2018, the former CEO of Post of Russia, Dmitry Strashnov, was appointed to the position of the company's chief executive officer.