I wonder why the Ukrainian government is so interested in the domestic production of fertilizers - it just decided to give 102 million UAH to farmers to buy fertilizers from domestic companies
The Ministry of Industrial Policy earlier already started an investigation on the increasing import of fertilizers. Maybe the reason is that the price of imported fertilizers is lower than that of Ukrainian produced fertilizer ...
This reminded me of something I read in 2007 - when a law to support fertilizer producers was proposed by MPs linked to fertilizer producers...
Four MPs Suggest Rada's Further State Support To Producers Of Nitrogenous Mineral Fertilizers
(Ukrainian News, Kostiantyn Druzheruchenko, 03/22/2007) Members of Parliament Oleksii Kunchenko (Socialist Party faction), Yevhen Lapin (Party of Regions faction), Andrii Lopushanksyi (faction of the Our Ukraine bloc) and Mykola Yankovskyi (Party of Regions faction) are proposing that the Verkhovna Rada renders further state support to producers of nitrogenous mineral fertilizers.This follows from a draft law No. 3197 named 'On measures of state support and stimulating production of nitrogen mineral fertilizers in Ukraine', registered with the Rada on March 13.
In particular, they suggest setting up privileges for 2007-2012 to producers of nitrogenous fertilizers, which feed themselves with gas, to attract capital investments for upgrading enterprises.
According to the bill, every year, when planning state budget expenses, the Cabinet of Ministers must foresee an item of expense for giving the Ukrainian agricultural producers dotations for purchasing mineral fertilizers.
Besides, the deputies suggest amending the national budget, to allow a zero VAT tariff for operations on supplies of natural gas to producers of nitrogenous mineral fertilizers.
As of today, the Law on national budget 2005 introduced a five-year moratorium for giving new and extending old privileges.
The draftsmen also suggest the Rada to introduce a special order of defining depreciation charges to enterprises producing mineral fertilizers: annual norm of depreciation of fixed assets at 24%.
In the deputies' opinion, adoption of this bill will help minimizing negative influence of gas prices on development of chemical industry and also promote introduction of energy saving technologies.
As Ukrainian News earlier reported, in Ukraine six major chemical producers feed themselves with gas: the Styrol concern (Donetsk region), the Odesa Portside Plant (Odesa region), Rivneazot (Rivne), DniproAzot (Dnipropetrovsk region), the Severodontesk union 'Azot' (Luhansk region) and Azot (Cherkasy).
The Ukrhaz-Energo joint enterprise and the RosUkrEnergo company signed an agreement on delivery of at least 55 billion cubic meters of natural gas to Ukraine at the price of USD 130 per 1,000 cubic meters in 2007.
Kunchenko is the honorary president of the Severodontesk union 'Azot', Yankovskyi - the honorary board chairman of Styrol.
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