HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"L 277/8
EN
Official Journal of the European Union
11.10.2012
DECISIONS
COMMISSION DECISION
of 10 October 2012
amending Decision 2008/577/EC accepting the undertakings offered in connection with the anti-
dumping proceeding concerning imports of ammonium nitrate originating in Russia
(2012/629/EU)
THE EUROPEAN COMMISSION,
Moscow, Russia and EuroChem Trading GmbH, Zug,
Switzerland, (‘the Eurochem Group’) to the first inde
pendent customer in the Union.
Having regard to the Treaty on the Functioning of the European
Union,
(3)
By the same Decision, the Commission also accepted an
undertaking from a Ukrainian company. Measures on
Having regard to Council Regulation (EC) No 1225/2009 of
imports of ammonium nitrate originating in Ukraine
30 November 2009 on protection against dumped imports
expired on 17 June 2012 ( 7 ), thus the related undertaking
from countries not members of the European Community ( 1 )
also expired on the same day.
(the ‘basic Regulation’), and in particular Articles 8 and 9
thereof,
(4) The
undertaking
accepted
from
the
Eurochem
Group
is
After consulting the Advisory Committee,
based on three elements, namely (1) an indexation of the
minimum prices in accordance with public international
quotations, (2) a quantitative ceiling and (3) a
Whereas:
commitment not to sell the products covered by the
undertaking to the same customers in the European
Union to which they sell other products, with the
A. EXISTING MEASURES
exception of certain other products for which the
Eurochem Group undertook to respect specific price
(1) The
Council,
by
Regulation
(EC)
No
2022/95
( 2 ),
regimes.
imposed a definitive anti-dumping duty on imports of
ammonium nitrate originating in Russia. Following a
request for an expiry and interim review, the Council,
(5) As
referred
to
in
recital
14
of
the
Decision,
when
by Regulation (EC) No 658/2002 ( 3 ), imposed a definitive
accepting the undertaking, the sales structure of the
anti-dumping duty on imports of ammonium nitrate
Eurochem Group was such that the Commission
originating in Russia. Following a request for another
considered the risk of circumventing the undertaking as
expiry and interim review, the Council, by Regulation
limited.
(EC) No 661/2008
( 4 ), imposed a definitive anti-
dumping duty on imports of ammonium nitrate orig
inating in Russia. This Regulation was last amended by
B. CHANGED CIRCUMSTANCES
Council Regulation (EC) No 989/2009 ( 5 ).
(6) In
April
2012,
the
Eurochem
Group
informed
the
Commission of a change in its corporate and sales
(2) The
Commission,
by
Decision
2008/577/EC
( 6 ) (‘the
structure, namely that it had acquired a fertiliser
Decision’) accepted a price undertaking (‘the undertak
production and sales facility in the European Union
ing’), inter alia, from the companies Open Joint Stock
which produces and sells not only the products
Company (OJSC) ‘Azot’, Novomoskovsk, Russia, or
covered but also a variety of other fertiliser products.
Open Joint Stock Company (OJSC) ‘Nevinnomyssky
Azot’, Nevinnomyssk, Russia, concerning imports of
ammonium nitrate produced by these companies and
(7) The
Commission
analysed
the
implications
of
this
either sold directly to the first independent customer in
acquisition and considered that there is a high risk of
the Union or sold by Eurochem Trading GmbH, Zug,
cross-compensation. Indeed, if Eurochem Group’s
Switzerland or sold via Open Joint Stock Company
recently acquired fertiliser production and sales facility
(OJSC) Mineral and Chemical Company ‘Eurochem’,
in the European Union sells any of its products to the
same customers as the other members of the Eurochem
( 1 ) OJ L 343, 22.12.2009, p. 51.
Group, the prices for such transactions could be set in a
( 2 ) OJ L 198, 23.8.1995, p. 1.
way to compensate for the Minimum Import Prices
( 3 ) OJ L 102, 18.4.2002, p. 1.
subject to the undertaking. Such a compensation would
( 4 ) OJ L 185, 12.7.2008, p. 1.
( 5 ) OJ L 278, 23.10.2009, p. 1.
( 6 ) OJ L 185, 12.7.2008, p. 43.
( 7 ) OJ C 171, 16.6.2012, p. 25.

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EN
11.10.2012 Official
Journal
of
the
European
Union
L
277/9
however not be identifiable by monitoring activities since
product covered by the undertaking to any customer to
the price structure for the majority of products produced
whom its recently acquired fertiliser production and sales
by the recently acquired fertiliser production and sales
facility in the EU sells any of its products. The Eurochem
facility is not subject to any publicly available source,
Group also explained that the referred fertiliser
thus it cannot be assessed whether the prices paid by
distribution group constitutes the traditional sales
the customers respond to the value of the products or
channel of its recently acquired fertiliser production
take into account a potential rebate in order to
and sales facility in the EU hence it does not create
compensate transactions subject to the undertaking for
additional cross-compensation risk. In addition, the
which a Minimum Import Price has to be respected. In
Eurochem Group claimed the influence over price
other words, the monitoring of the undertaking would
quotations is theoretical since it would be contrary to
become impracticable and unworkable. The Commission
its own commercial interest to set a lower selling price
informed the Eurochem Group accordingly and
for its ammonium nitrate of EU origin in order to reduce
announced that it would be inclined to consider the
the indexed Minimum Import Prices for the ammonium
withdrawal of the undertaking.
nitrate of Russian origin.
(8)
Subsequently, the Eurochem Group offered not to sell to
(15) The
Commission
considers
that
the
revised
commitment
the same customers products covered by the undertaking
does not alter the outcome of its initial assessment on
which are either of Russian origin or of EU origin. The
the impracticability of the undertaking. Firstly, regardless
Eurochem Group would also apply the existing price
of the fertiliser group being the traditional sales channel
discipline concerning the sales of other products to
of its recently acquired production and sales facility in
those products of EU origin. All sales of Russian and
the EU, it is still a new sales channel to the Eurochem
EU origin should also be reported.
Group. Therefore, the monitoring of the undertaking
would still require to verify all sales made by the
Eurochem Group’s fertiliser and sales facility in the EU
(9) The
Commission
considers
that
these
commitments
to ascertain the lack of cross-compensation, thus
cannot alter its initial assessment for the following
rendering the monitoring very burdensome. Secondly,
reasons: (1) products of EU origin cannot be made
the likely influence over price quotations cannot be elim
subject to a price discipline, (2) not all manufactured
inated since de facto the price quotations used to establish
products of EU origin would be subject to reporting
the Minimum Import Prices will be affected by the sales
and (3) the monitoring of such an undertaking would
of the recently acquired fertiliser production facility in
be impracticable as stated in recital 7 above.
the EU.
(10) Moreover,
it
cannot
be
excluded
that
some
of
the
price
quotations (being the basis for the price indexation
D. AMENDMENT OF DECISION 2008/577/EC
mechanism) could be influenced by the acquisition of
(16) Therefore,
in
accordance
with
Article
8(9)
of
the
basic
EU-based production and sales facilities.
Regulation and also in accordance with the relevant
clauses of the undertaking authorising the Commission
to unilaterally withdraw the undertaking, the
(11) Finally,
in
July
2012,
the
Eurochem
Group
informed
the
Commission has concluded that the acceptance of the
Commission of another change in its corporate structure,
undertaking offered by the Eurochem Group should be
namely that one of its members trading the product
withdrawn and Decision 2008/577/EC should be
concerned acquired the control through shares of a
amended. Accordingly, the definitive anti-dumping duty
distribution group of fertilisers located both in third
imposed by Articles 1 and 2 of Regulation (EC) No
countries as well as in the EU. This has added to the
661/2008 should apply to imports of the product
increased risk of cross-compensation and to the imprac
concerned produced by the Eurochem Group (Taric
ticability of the undertaking as explained in recital 7
additional code A522),
above.
(12) Based on the above considerations, the Commission
HAS ADOPTED THIS DECISION:
concluded that following the change in corporate and
sales structure of the company, there is a high risk of
cross-compensation and the undertaking accepted from
Article 1
the Eurochem Group becomes impracticable and
Acceptance of the undertaking in relation to the companies
therefore should be withdrawn.
Open Joint Stock Company (OJSC) ‘Azot’, Novomoskovsk,
Russia, or Open Joint Sstock Company (OJSC) ‘Nevinnomyssky
Azot’, Nevinnomyssk, Russia, concerning imports of
(13) The
Eurochem
Group
was
informed
of
the
Commission’s
ammonium nitrate produced by these companies and either
conclusions and given an opportunity to comment.
sold directly to the first independent customer in the Union
or sold by Eurochem Trading GmbH, Zug, Switzerland or
C. WRITTEN SUBMISSIONS
sold via Open Joint Stock Company (OJSC) Mineral and
Chemical Company ‘Eurochem’, Moscow, Russia and
(14) The
Eurochem
Group
was
granted
the
opportunity
to
be
EuroChem Trading GmbH, Zug, Switzerland, (‘the Eurochem
heard and written submissions were also received in
Group’) to the first independent customer in the Union (Taric
which the Eurochem Group offered not to sell the
additional code A522) is hereby withdrawn.

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L 277/10
EN
Official Journal of the European Union
11.10.2012
Article 2
The table of Article 1 in Decision 2008/577/EC is replaced by the following table:
‘Country Companies Taric
additional
code
Russia JSC
Acron,
Veliky
Novgorod,
Russia
and
JSC
Doro
A532’
gobuzh, Dorogobuzh, Russia, members of “Acron”
Holding Company
Article 3
This Decision shall enter into force on the day following that of its publication in the Official Journal of the
European Union.
Done at Brussels, 10 October 2012.
For the Commission
The President
José Manuel BARROSO

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