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The European Union renewed for another five years tariffs on ammonium nitrate from Russia to protect EU producers such as Polands Zaklady Azotowe Pulawy SA from the threat of unfair price undercutting.

The EU re-imposed the duties as high as 47.07 euros ($60.46) a metric ton against Russian exporters including OAO EuroChem for allegedly having sold the fertilizer in the bloc below cost, a practice known as dumping. EU anti-dumping protection against ammonium nitrate from Russia dates to 1995.

If measures were allowed to lapse, the Union industry will in all likelihood be faced with increased unfair competition, the European Commission, the 28-nation EUs trade authority in Brussels, said today in the Official Journal. The termination of measures would undoubtedly lead to a quick deterioration of their economic situation.

Russian exporters increased their share of the EU ammonium-nitrate market to 3.1 percent in the 12 months through June 2013 from 2.3 percent in 2010, according to the commission. Other Russian exporters include OAO Acron, UralChem Holding Plc and Kemerovo-based OAO Azot.

The benefits of prolonging the 19-year-old trade protection for EU manufacturers that also include Yara France SA, GrowHow UK Ltd. and Lithuania-based AB Achema outweigh the possible disadvantages for European farmers, said the commission.

The impact of the current measures in force on Union farmers as a whole is not significant, the commission said. It predicted that Russian export prices would fall to about 221 euros a ton -- the level on the domestic market in Russia -- from 264 euros a ton during the 12 months through mid-2013 should the anti-dumping levies be repealed.

By comparison, EU producers sold ammonium nitrate at an average of 303 euros a ton in the 12 months through June 2013, according to the commission.

The five-year renewal of the anti-dumping duties, due to take effect tomorrow, is the outcome of a probe opened in July 2013 into whether to renew the measures. The inquiry, which prevented the duties from lapsing as previously scheduled at the time, stemmed from a request by a European industry group on behalf of manufacturers that accounted for more than a quarter of the EUs output of ammonium nitrate.

The duties range from 28.88 euros a ton to 47.07 euros a ton, depending on the type of ammonium nitrate and on the Russian exporter.

While EU anti-dumping protection against Russian ammonium nitrate has been in place since 1995, the duty rates initially were variable because they amounted to the difference between a minimum import price and any imports below that price. The current fixed maximum rate was set in 2002.

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Russia Faces Renewed European Union Tariffs on Ammonium Nitrate