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RESOLUTION OF THE MINISTRY OF ANTI-MONOPOLY REGULATION AND TRADE OF THE REPUBLIC OF BELARUS

of January 13, 2017 No. 4

About approval of the Instruction about procedure for establishment and application by the individual entrepreneurs and legal entities included in the State register of the business entities holding dominant position in the goods markets of the Republic of Belarus on goods item "nitrogen fertilizers", selling prices on the nitrogen fertilizers made by them

Based on subitem 2.1 of Item 2 of the Presidential decree of the Republic of Belarus of February 25, 2011 "About some questions of price regulation (rates) in the Republic of Belarus" the Ministry of anti-monopoly regulation and trade of the Republic of Belarus DECIDES: No. 72

1. Approve the enclosed Instruction about procedure for establishment and application by the individual entrepreneurs and legal entities included in the State register of the business entities holding dominant position in the goods markets of the Republic of Belarus on goods item "nitrogen fertilizers", selling prices on the nitrogen fertilizers made by them.

2. This resolution becomes effective after its official publication.

Minister

V. V. Koltovich

Approved by the Resolution of the Ministry of anti-monopoly regulation and trade of the Republic of Belarus of January 13, 2017 No. 4

The instruction about procedure for establishment and application by the individual entrepreneurs and legal entities included in the State register of the business entities holding dominant position in the goods markets of the Republic of Belarus on goods item "nitrogen fertilizers", selling prices on the nitrogen fertilizers made by them

1. This Instruction determines procedure for establishment and application by the individual entrepreneurs and legal entities making nitrogen fertilizers and selling them in the domestic market of the Republic of Belarus, except for nitrogen fertilizers in consumer packaging, included in the State register of the business entities holding dominant position in the goods markets of the Republic of Belarus on goods item "nitrogen fertilizers" (further - business entities), selling prices.

2. Selling prices on nitrogen fertilizers are established on the first of each calendar month on the following formula:

                                                                                               Tso = (Tsm-of T) x Knb x KP,

where Tso - the selling price established by business entity on made by it (including according to the works agreement) nitrogen fertilizers in Belarusian rubles for 1 ton without the value added tax on delivery conditions of FCA ("free carrier") according to International commercial terms (the INCOTERMS 2010) (further - FCA);

Tsm - average value of market prices in US dollars of each type of nitrogen fertilizers on delivery conditions of FOB ("free on board") according to International commercial terms (the INCOTERMS 2010) (further - FOB);

T - transportation expenses in US dollars on delivery of 1 ton of each type of nitrogen fertilizers from business entity of nitrogen fertilizers on delivery conditions of FCA to the buyer on delivery conditions of FOB;

Knb - the official value of Belarusian ruble exchange rate established by National Bank of the Republic of Belarus in relation to US dollar for the date preceding five days before start date of each calendar month;

KP - transitional coefficient in the amount of 0,95 during the period from October 1 to April 30 and in the amount of 1,0 during the period from May 1 to September 30 (it is applied in case of determination of selling prices on the nitrogen fertilizers realized to agricultural organizations of the Republic of Belarus).

Value of transitional coefficient of the KP during the period increases from October 1 to April 30 by 0,05 each next calendar year and cannot exceed 1,0 value.

The selling prices established according to this Item are applied by business entities during calendar month.

3. Average value of market prices in US dollars of each type of nitrogen fertilizers on delivery conditions of FOB Baltic for all days of the biddings in the month preceding the beginning of each calendar month is calculated business entity based on the weekly data published by the Argus Media agency as arithmetic average value of all published maximum and minimum indications during calendar month, but not later than five calendar days before start date of each calendar month. The indications published within five calendar days before start date of each calendar month are not taken into consideration, and join in calculation of selling prices of the following calendar month.

4. Transportation expenses from producer of nitrogen fertilizers on delivery conditions of FCA to the buyer on delivery conditions of FOB Baltic are determined by delivery of 1 ton of each type of nitrogen fertilizers proceeding from the developed actual price level for the previous calendar month.

In case of lack of the actual export shipments of the made nitrogen fertilizers in the previous calendar month transportation expenses from producer of nitrogen fertilizers on delivery conditions of FCA to the buyer on delivery conditions of FOB Baltic are determined by delivery of 1 ton of each type of nitrogen fertilizers proceeding from the developed actual price level for the last calendar month in which such shipments were performed.

The official value of currency rates established by National Bank of the Republic of Belarus for the date preceding five days before start date of each calendar month is applied to recalculation of level of transportation expenses of US dollars.

5. Establishment of selling prices according to Item 2 of this Instruction is performed on each of the following types of nitrogen fertilizers:

carbamide prillirovanny premium;

the carbamide granulated;

ammonium sulfate;

carbamide and ammoniac mix of the KAS-32 brand.

Establishment of selling prices on grades of carbamide prillirovanny, except for carbamide of the prillirovanny premium, is performed using the developed ratios between selling price on the premium in relation to selling prices on the first (coefficient of 0,99975) and the second (0,9995) coefficient grade.

Establishment of selling prices on carbamide and ammoniac mixes of the KAS brand, except for the KAC-32, brands is performed by recalculation of selling price in proportion to content of active ingredient in product. For the KAS-30 brand the conversion factor makes 0,9375, for the KAS-28 brand conversion factor makes 0,875.

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