A terrible blow to the business of Poroshenko’s bloc: Russia imposed sanctions on salt
Salt is included in the list of products prohibited for import into the Russian Federation from countries that have imposed sanctions against Russia. The corresponding decree of the Russian government was published today on the official portal of legal information and comes into force on November 1, 2016.
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Of the 520 thousand tons of salt that the Russian market needs, 350 thousand tons are produced by domestic producers: Russol and Tyretsky Solerudnik. The main importers are Ukraine and Belarus.
In Ukraine, this is the state-owned enterprise Artemsol, located in the Donetsk region. Its share in the Russian market has decreased in recent years from 26 to 13%, but this did not prevent the company from increasing profits by more than 2 times compared to 2015. At the end of August 2016, the net profit amounted to UAH 38,1 million. In August 2015, the company operated with a loss of UAH 1,3 million.
According to Rusprodsoyuz, in May-July of this year, the Ukrainian state enterprise Artemsol supplied more than 70 thousand tons of products to Russia, despite the fact that the production level at the enterprise is about 150 thousand tons. That is, we are talking about the loss of more than 20% of the sales market by Artemsol.
Last year, Ukrainian media wrote about the upcoming privatization of Artemsol. Moreover, the deputy from the Poroshenko Bloc Oleg Nadava was named as an interested party. It was reported that the state-owned enterprise sells almost the entire volume of technical salt to its company Costanza at a reduced price.
In January last year, Rospotrebnadzor suspended supplies of Artemsol products to Russia due to their low quality. It had the wrong concentration of iodine and also contained inappropriate impurities.
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