Three new companies on the Polish sanctions list

National Tax Administration announced on Wednesday that the head of the National Revenue Administration exercised his powers and submitted applications for entry on the sanctions list of three more entities. The list includes companies that export urea, produced by the Grodno Azot company subject to EU sanctions. The list is maintained by Ministry of the Interior and Administration (MSWiA).

“These are yet another entities identified by KAS that traded urea of ​​Belarusian origin. One of the entities is based in the United Arab Emirates, while the other two are registered in Belarus,” KAS said in a statement. She added that these were the companies World Chem Trading, Technospetstrading and TechnospetstradingExport.

She assured that she monitors the fertilizer industry and takes effective actions to ensure that the imposed sanctions are complied with.

According to KAS, the actions taken are the result of monitoring the international trade in fertilizers by the National Tax Administration in terms of disclosing activities that violate the regulations regarding sanctions imposed on Russia and Belarus.

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“These actions will not only thwart the disclosed practice of circumventing sanctions, but will also result in the protection of the Polish fertilizer industry and producers from EU Member States,” said KAS. She assured that the structures are constantly conducting intensive analyzes of compliance with restrictions related to sanctions, covering many areas, industries and issues.

“If further cases of violations of sanctions are identified, the head of the National Council of the Russian Federation will take action in accordance with his competences,” added the KAS.

KAS reminded that inclusion on the Polish sanctions list means subjecting a person or entity to the following restrictive measures: freezing of all financial funds and economic resources, prohibition of making available to entities/persons entered on the list or on their behalf – directly or indirectly – any financial funds or economic resources, prohibition of conscious and willful participation in activities whose purpose or effect is to circumvent the law, exclusion from proceedings for the award of a public procurement or competition, entry in the list of foreigners whose stay in the territory of the Republic of Poland is undesirable (in the case of persons).

The largest fertilizer producer in Poland, Grupa Azoty, recently warned that importing fertilizers from Russia and Belarus significantly weakens the profitability of production in the EU. “In this situation, growing imports pose a very big threat to our industry,” Grupa Azoty said. She added that in her case the average was over 60%. revenue comes from the AGRO segment. Grupa Azoty states that it ranks second in the European Union in the production of nitrogen and multi-component fertilizers.

The company indicated that if tariffs were imposed on producers from Russia and Belarus, European Union will remain self-sufficient when it comes to supplying fertilizers to farmers. “In the 2022/2023 season, the domestic consumption of nitrogen fertilizers was slightly above 50%, and NPK fertilizers was above 60% of the domestic production capacity,” noted Grupa Azoty.

Paulina Zielińska-Olak, director of domestic sales of fertilizers at Anwil, pointed out in November this year that, for example, Russian producers achieve several times higher margins on the sale of fertilizers compared to European producers. “These are margins of up to 40-50 percent, while the best European producers generate margins of 20 percent, and domestic producers have margins of EBITDA minus 10 to 10 percent. This shows how difficult a situation we are in and that we need urgent intervention,” she emphasized.

November 20 this year Poland, Lithuania, Latvia and Estonia sent a joint letter to the EC regarding the introduction of customs duties on fertilizers from Russia and Belarus. It may be as much as 30-40 percent. bedspread.