PUBLIC STAND REGARDING THE RESULTS OF THE COMPETITION
On July 12th, 2021, JSC OPP (Odessa Port Plant) published on its official website the news about having defined the winner of the selection round of the supplier of toll raw materials announced on March 29th, 2021. The winner is DACHEX SHIPPING PTE. LTD, resident of the Republic of Singapore, with a paid-up share capital of USD 10 thousand specializing in affreightment / chartering the vessels, barges, and motorboats with the crew.
Agro Gas Trading LLC has been fostering economic relations with JSC OPP since July 2019. Back then, at its own expense, Agro Gas Trading LLC launched the company's facilities. Within this time, the plant underwent a journey from a basically idle enterprise with an indistinct future, to one of Ukraine's leaders in the production of urea and ammonia. Today, JSC OPP is the only state-owned enterprise in Ukraine that produces mineral fertilizers at the level of 70 thousand tons per month.
In two years of joint work of Agro Gas Trading LLC and JSC OPP, the plant managed to resume its activities in full, increase the salaries of JSC OPP employees by over 20%, launch the procedure of debt repayment to NJSC Naftogaz of Ukraine, as well as regain the status of one of the largest producers of ammonia and urea in Ukraine, resume supply to the international market, break several records in finished products, start a new line of medical oxygen production, and increase its privatization value several times.
Our company has played a key role in these achievements, thanks to the disciplined implementation of our natural gas supply obligations. During our cooperation, the price of processing for ammonia increased from 36 US dollars per ton to 43 US dollars per ton, and the price of processing into urea went from 47 US dollars per ton to 62 US dollars per ton, as well as a quarterly additional remuneration for the first quarter (second quarter of 2021), amounted to UAH 27 million. Aside from that, Agro Gas Trading LLC has repeatedly supported JSC OPP. In particular, in cases where the plant could be left without a natural gas supplier, which would lead to a complete shutdown of JSC OPP, our company always met its partners halfway and ensured a stable supply of natural gas for plant functioning.
The staff of Agro Gas Trading LLC is sincerely concerned about the situation at the plant. After all, although the selection process includes companies that have a strong reputation for being reliable contractors, JSC OPP selected a completely unknown company to be the winner. During the third stage of selection, the negotiations, the pre-approved selection procedure was violated by establishing the same defining additional conditions for cooperation - the maximum suggested amount of financing (interest-free loan), and the term of such financing. Such additional conditions are not included in the procedure for selection and determination of the customer of processing works toll raw materials and shipment of finished products for JSC OPP (approved by the Management Board of JSC OPP (Minutes of March 23rd, 2021, № 15) and the Supervisory Board of JSC OPP (Minutes of March 29th, 2021, № 8/2021).
Agro Gas Trading LLC, during negotiations with JSC OPP within the approved procedure, in addition to the suggested funding, also offered to increase the cost of processing services and financing of the "Khimik" sports team throughout the duration of the agreement. In addition, DACHEX SHIPPING PTE. LTD is a non-resident company in Ukraine, which carries the risk of withdrawal of profits from joint activities between DACHEX SHIPPING PTE. LTD and JSC OPP, to foreign countries. The important point is that the funding suggested for DACHEX SHIPPING PTE. LTD will have to be returned, which disproves the fact of receiving a financial benefit for JSC OPP as a result of such agreement.
Agro Gas Trading LLC is convinced that placing additional conditions during the negotiations is illegal, and it facilitates the non-transparent selection of a new supplier for JSC OPP. Moreover, the establishment of such conditions leads to the restrictions for JSC OPP in its choice of a new supplier, because increasing the cost of processing services or other forms of investment would provide a much more significant economic effect for the plant. We are ready to defend our position in courts, in accordance with the current legislation of Ukraine.
14 July, 2021