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. Last Updated: 07/27/2016

Pikalyovo Supplier Facing Fine for Withholding Data

The Federal Anti-Monopoly Service may fine fertilizer producer PhosAgro up to 500,000 rubles ($16,000) for not submitting information on its production costs, the service said Tuesday.

If PhosAgro does not submit the information by Aug. 31, a deal brokered in Pikalyovo in June by Prime Minister Vladimir Putin might fall apart.

BaselCement, a consumer of PhosAgro’s nepheline, closed in January, forcing two other factories in its Pikalyovo complex to suspend operations.

Factory workers protested the suspensions, prompting Putin to pay a visit to the factory on June 4. Putin rebuked the plant’s owners, including billionaire Oleg Deripaska, and ordered Murmansk-based PhosAgro and BaselCement, along with two other Pikalyovo factories, to sign new contracts.

The deal was good for three months, during which time PhosAgro agreed to supply nepheline concentrate for 750 rubles per ton, which the fertilizer producer said was lower than its production costs. The anti-monopoly service was charged with finding a sustainable price for the plants’ products.

While the service has received some documents from PhosAgro, the company “never provided production costs for apatite concentrate, from which nepheline is produced,” said Denis Davydov, deputy head of the service’s industry control department. “We asked twice.”

Without the data, the service cannot calculate a fair price for nepheline concentrate and other products made at the Pikalyovo complex, Davydov said.

A PhosAgro representative, who declined to be identified in line with company policy, said Thursday that the firm had submitted all necessary information. “We have submitted all the information in full and at the right time, and we will submit all the requested information to the service again tomorrow.”