Stirol could benefit from cheap Russian gas

Russia agreed to sell 4 bln m3 of gas to Ukrainian fertilizer producers at USD 170 per ths.m3 vs. previous USD 390 per ths.m3, Kommersant daily reported, citing Prime Minister Azarov.According to Kommersant’s source in the Energy Ministry, gas will be distributed through RosUkrEnerg, a gas trading company 50% controlled by Dmytro Firstash and 50% by Gazprom. Therefore, fertilizer producers that are part of Dmytro Firstash DF group will benefit from the discounted gas prices. Antonina Davydenko: the news could be positive for Stirol (UX: STIR UK) that is 90% controlled by the DF group. However, it is not yet clear whether cheap gas will be available to the fertilizer producer due to potential transfer pricing within the DF group.