The public joint-stock company Agrarian Fund has ordered mineral fertilizers valued at UAH 1 billion from Ostchem Group, which allowed three enterprises of the group to resume operations.
According to a press release of Agrarian Fund, the funds to form batches of fertilizers and launching the plants totaled some UAH 1 billion, including UAH 750 million from the reserves of the company.
“These funds were temporarily available from a credit line from Ukrgasbank. First it was planned to send the money to expand our forward program, but we took into account the fact that stabilization of the situation on the mineral fertilizers market and preventing panic with farmers were top priorities. It was decided to use this money,” Agrarian Fund Board Chairman Andriy Radchenko said.
He said that Ostchem chemical enterprises that produced around 80% of mineral fertilizers on the Ukrainian market had resumed their operations. On June 16 Cherkasy Azot, on July 5 – Rivneazot and on July 7 – Severodonetsk Azot resumed operations.
Radchenko said that at present, contracts to supply around 200,000 tons of fertilizers had been signed with the Ostchem’s plants.
“Thus, the four-month collapse on the mineral fertilizers market is nearing end,” he said. (Interfax-Ukraine/Business World Magazine)