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Fosagro to supply apatite at a discount
A Russian court has once again supported the position of consumers in a dispute concerning the cost of apatite concentrate even though the Federal Anti-monopoly Service (the “FAS”) would like to liberalize the market. If Fosagro is not able to defend the prices for apatite as recommended by the FAS, the company stands to lose RUB 5 billion over the next few years.
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“The FAS’ rules are not obligatory for market participants. They could only be one argument in favor of Fosagro,” comments Yaroslav Kulik, Senior Associate at Art de Lex. “However, Kirovo-Chepetsky Chemical Plant has apparently succeeded in proving the justification of the price proposed to them”. Mr. Kulik notes, however, that the higher courts of appeal will have the final say in the matter.
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“The FAS’ rules are not obligatory for market participants. They could only be one argument in favor of Fosagro,” comments Yaroslav Kulik, Senior Associate at Art de Lex. “However, Kirovo-Chepetsky Chemical Plant has apparently succeeded in proving the justification of the price proposed to them”. Mr. Kulik notes, however, that the higher courts of appeal will have the final say in the matter.