No Gas Price Discounts for Fertlizer Producers

The Verkhovna Rada passed a law in the first reading yesterday that will free nitrogen fertilizer producers from paying VAT taxes for natural gas, and provide them with tax exemptions for the purchase of new equipment and to upgrade their production facilities. The law was drawn up by MPs with major holdings in Stirol and Svernodonetsk Azot. Vladimir Nesterenko: We believe that passage of this law in the first reading is a signal that there won’t be any gas price discounts for fertilizer producers. Thus, we remain bearish on Ukrainian fertilizer stocks.