Fertilizer producers opposed the proposal to change port tariffs

Fertilizer manufacturers have turned to Deputy Prime Minister Denis Manturov with a request to review the draft law on changing the rules for calculating rates for renting port infrastructure. They believe that this change could have a negative impact on the industry’s export potential.

Andrei Guriev, President of the Russian Association of Fertilizer Producers (RAPU), has appealed to Denis Manturov to instruct the Ministry of Transport, the Ministry of Industry and Trade, and the Ministry of Economic Development to review the idea of ​​changing the payment mechanism for the use of port infrastructure. Two sources familiar with the contents of the letter dated May 16 confirmed its authenticity. The government’s apparatus reported that the appeal had been received.

The Ministry of Transport’s draft law proposes to give the government the authority to determine the rental cost of federally owned port infrastructure, taking into account the income of tenants and the state’s expenses for maintaining this infrastructure.

Representatives of the Ministry of Transport and RAPU declined to comment on the situation. RBC has reached out to the press services of the Ministry of Industry and Trade and the Ministry of Economic Development.

Fertilizer manufacturers are concerned about the possibility of an increase in tariffs for logistics services due to the proposed changes, which could negatively impact the export of products. They express concerns about a possible decrease in the competitiveness of Russian goods in global markets.

Disagreement with the draft law was expressed by the head of the Russian Union of Industrialists and Entrepreneurs, Alexander Shokhin, who appealed to the Deputy Prime Minister with a request to review and revise the initiative. The Association of Sea Commercial Ports also expressed its disagreement with the draft law, considering it destructive.

Fertilizer manufacturers fear that the change in the rental calculation mechanism for ports could have a negative impact on the industry’s profitability and make export conditions more challenging. The necessary calculations and potential consequences of the changes are not included in the explanatory note.

In a situation where ports already generate high incomes, businesses fear that increased costs could affect service prices and lead to a rise in stevedoring service costs. Enterprises and experts also express concerns about the possible negative consequences of adopting the draft law on export potential and investment activity.

The implementation of the draft law could also affect the investment potential of port capacity development and reduce the share of exports in the overall volume of fertilizer shipments. There are currently no specific estimates of the impact of the new calculation scheme on export potential.