"Uralchem" filed a new lawsuit against "Fosagro".

The company filed a new lawsuit against "Fosagro".

UCC "Uralchem", the conflict of which with "Fosagro" group around deliveries of apatite concentrate has led to the stopping of  "Voskresensk mineral fertilizers" in 2014, is again trying to solve the problem in the courts. UCC has already agreed on the conditions which it refused before, but now "Fosagro" is not going to cooperate. As a result, plant again is on the verge of stopping, and lawyers believe attempts of "Uralchem" to solve the problem through the court are futile.

On July 7th "Voskresensk Mineral Fertilizers" (VMF) under control of "Uralchem" filed a suit in the Moscow Arbitration Court to "Apatit" and its main company "Fosagro", demanding it to sign a contract to supply about 450 thousand tons of apatite concentrate in 2016. VMF sent the corresponding offer in May, but "Fosagro" has not approved it. The structure of "Uralchem" proposes to set the price based on a formula agreed upon by the FAS in 2012. The first option - 70% of the concentrate on the basis of FOB North Africa plus 30% of the average prices for domestic consumers in the previous year adjusted to the index of industrial inflation. The second - 35% of the minimum export price, plus 35% of the price on FOB North Africa, plus 30% of the average domestic price. These formulas are valid until the end of 2016, after which the price should be calculated at the minimum export net of logistics costs and customs duties.