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They expect fertilizer exports to Ukraine to recover in the fall after the harvest.
Lithuania exports about a third of all fertilizers exported to Ukraine.
Ramūnas Miliauskas, CEO of Achema, says Ukraine’s decision is unexpected but gratifying.
“Clearly, we are very happy with that decision, it was a bit unexpected.” Just a week ago, it was spoken out loud that there would be quotas for the EU countries and for each country separately, ”R. Miliauskas told BNS.
“In the course of the investigation, they probably discovered that these imports are not actually increasing and that this does not worsen the situation for local producers,” he added.
Linas Kieras, commercial director of Lifosa, says that Lithuanian entrepreneurs expected exactly such a solution.
According to him, Ukraine’s decision was undoubtedly influenced by pressure from Lithuania.
“I think that everything has influenced both the work of the Ministry of Foreign Affairs and the President, the various letters that we have written, precisely on this subject. And the Ukrainian businessmen themselves may have influenced this decision, because they cannot import from Russia, so the only alternative for them is to import from Lithuania or other countries, “L. Bieras told BNS.
According to R. Miliauskas, to change Ukraine’s position, all stakeholders were involved, including Poland, Belarus, Sakartvell and Kazakhstan.
“Everyone was involved because the beginning of that investigation was not very clear why it started, and when there is no clarity, everyone connects as much as possible to have a clear understanding of the situation,” said the Achema chief.
According to him, due to the uncertainty caused by the investigation of the fertilizer market, exports to Ukraine had decreased: local sellers were very careful when signing the contracts.
“There were such cash sales to Ukraine, we transported them, and now, after this decision, I think everything should be back to normal and it would be possible to talk about long-term contracts again,” said R. Miliauskas.
According to him, the company’s exports should fully recover in late fall.
“We are approaching a time when everyone will be busy harvesting, not buying fertilizer. That being said, here and now they will start making contracts and shipping, so I very much doubt that everyone will now focus on the harvest. And after that, late fall, everything should recover, “said R. Miliauskas.
At the time, L. Kier emphasized that Ukraine’s Lifosai is a relatively new market, so the volume of exports to this country should remain at a similar level.
“I don’t think they have decreased or increased, this is a new market and we don’t have any statistics.” I think it will remain exactly the same as after the Russian crisis, “said a Lifosa spokesperson.
Lithuanian fertilizer producers previously feared that Ukraine would impose restrictions on the fertilizer trade, they were discussed in mid-May, but since then the country’s position has changed and it has decided not to impose customs duties.
The Lithuanian Ministry of Foreign Affairs announced on Friday that Ukraine had completed the fertilizer market investigation that had been underway since August 2019, raising concerns among Lithuania’s fertilizer producers and exporters.
As Foreign Minister Linas Linkevičius noted, Ukraine’s intentions to restrict the import of fertilizers violate the Agreement on the World Trade Organization and the Association between the European Union and Ukraine.
The situation in the Ukrainian fertilizer market has changed dramatically since the country began to restrict fertilizer imports from Russia and, starting in 2018, stopped importing Russian fertilizers, which accounted for the bulk of its imports. Until then, Ukraine had announced anti-dumping duties on ammonium nitrate fertilizers.
Russian fertilizer company EuroChem, which manages Lifosa, also pulled out of Ukraine last year and sold a subsidiary in Ukraine.
Last year, Lithuania exported fertilizers to Ukraine for 114.6 million. EUR – about 30 percent. of all Lithuanian fertilizer exports.
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