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Trade policy


Approved by

 General Director of

 LLC «Mendeleevskazot»

 _____________Abdrakhmanov F.A

 «21» December 2012



1. General Provisions.

 LLC «Mendeleevskazot» operates in accordance with Civil Legislation of Russian Federation, Federal act «On limited liability companies», company charter and constituent documents.

Location of LLC «Mendeleevskazot» – the Republic of Tatarstan, Mendeleevsak, Industrial zone.

 The main aim of the company is entrepreneurial activity, which is designed for  getting the profit in a manner and on terms   in accordance with existing legislation.

The plant merchandises ammonium nitrate, nitric acid, liquid and gaseous bulk oxygen, delivers drinking water, provides railway and other services.

2. The main conceptions, definitions and abbreviations.

Product market.

 In accordance with article №4 of Federal Law from 26th July 2006 № 135-FZ  « On Business competition defence » product market is the sphere of good circulation, where a good can’t be changed on another one.  Within the boundaries of this market (including geographical boundaries) based on economical, technical and other reasons, consumer is able to buy goods, which cannot be found and bought anywhere else

According to above mentioned requirements on mineral fertilizers supply to Russian consumers there are some product markets, which include:

 - Product market of agriculture producers;

 -Product market of industrial consumers.

Agriculture producers – are Russian individual persons and legal entities, who produce agricultural products, buy mineral fertilizers in order to apply them in direct fertilization on the territory of Russian Federation.

Industrial consumers – are Russian plants of chemical, mining, extractive and other types of industries.

Delivery terms

 Supply of mineral fertilizers is made in accordance with following requirements of «Incoterms 2010»:

 - FCA producer factory

 - СРТ station of destination (supply is made by railway);

 - FOB (port).

 Packing of mineral fertilizers

 Mineral fertilizers can be delivered in bulk or in packages:  bag - 50 kg; soft containers of single use - 500 or 800 kg.

 Type of package depends on technological possibilities and availability of this package at the moment of initiating a request by the consumer.

In the case of delivering ammonium nitrate in bulk on CPT bases it is necessary to confirm the readiness of bulk intake at the end station.

 During the delivery of ammonium nitrate (a cargo with class of danger: 1-9) on СРТ bases with the help of railway supply on special terms, the customer must guarantee sending of telegrams from the station of departure to the end point. The telegram which confirms readiness of the station in taking the product should be sent within 5 calendar days, from the date of first shipment of product.

3. Sphere of Application.

This Trade Policy represents a procedure, which regulates an order of realizing the contractual business and setting of prices during the sale of end products, goods, works and services at trade markets of Russian Federation.

 The main aim of this policy is a creation of objective, transparent mechanism of price formation at trade markets of Russian Federation, as well as achievement of economical interest balance of LLC «Mendeleevskazot» and its consumers.

 Trade Policy comes into force from the  1st January2013 and extends for unlimited period of time. There is possibility for making alterations in the Trade Policy.

 One of the main tasks of the plant, on the bases of competition at the market and logistics of an end product, is providing consumers with products, works and services. 

During the distribution of the product the Company is oriented as on huge and middle-sized consumers so to small ones. Depending on consumers’ request the shipment of ammonium nitrate could be done to domestic market as well as to export market.

 Formation of the price during export sales is made in accordance with requirements of «Incoterms 2010», «ICC rules on using of domestic and international trade terms

In the case of retreating these requirements, the formation of the price should be necessarily noted in the contract or specification.

In this case the following delivery terms can vary:

 - Types of supply,

 - Types of package,

 - Distance of supply to an end point.

 Besides realization of ammonium nitrate, nitric acid and oxygen the plant provides railway services. The price for railway delivery is regulated in accordance with Decree of the Government of the Russian Federation from the 7th March of 1995 № 239  « On Measures of state price adjustment ». 

The confirmation of tariffs takes place in Committee of Tariffs (The Republic of Tatarstan), which sets maximal level of tariffs on this kind of services.

In order to support long-term partnership with the clients, the plant makes a provision for discount, which depends from the volume of carried cargoes.

Besides railway services the plant also provides additional services such as:

 - shunting operations;

 - car weighing;

 - sludge of cars on the railways of LLC «Мendeleevskazot»;

 - cleaning the railways from snow;

 - gauger services.

In addition to these services the plant also sells drinking water and provides services on water cleaning according to Federal Law №416-FZ from the 7th December 2011 (Chapter №6 «Regulations of tariffs in the sphere of water supply and water disposal.) The plant also provides heat energy according to Federal Law № 190-FZ from the 27th July 2010. (Article 10 «Essence and order of state price regulation (tariffs) on heat power (capacity.

The methods of price regulation on this or that type of services are set according to price policy of the plant.

4. Realization of products and services in the Republic of Tatarstan  

 - delivery priority (providing of services) to domestic market;

 - planning of supplies (providing of services);

 -terms of payment – 100% prepayment;

 -currency of the contract – roubles of Russian Federation;


 - identical requests from clients are executed at the same price;

 - if the requests from clients differ in classification, basis of supply, volume, package, time of delivery, day of payment, request period, then the price will be different;

 - pricing supplement remains unchanged if a consumer have made payment in time,specified by the agreement;

 - the plant doesn’t take responsibility for reservation of pricing supplement in the case of  its expiration of validity by the time of contract execution with a consumer. Besides the plant doesn’t take responsibility for reservation of pricing supplement if there are some changes in the requirements of the request at the consuming end.

5. Peculiarities of price setting during the delivery of fertilizers to the product market of agricultural producers.

 The price on mineral fertilizers for agricultural producers on the bases of FCA-ex works can’t be higher than it is declared in accordance with the cooperation contract, which was signed between Russian Association of Fertilizers Producers and Agro Industrial Union of Russia, for the reason of meeting the requirements of agricultural producers. 

The price on mineral fertilizers for agricultural producers, in a particular period of time can depend on different factors, including:  

-netback price and production profitability;

-market conditions;

 -demand/offer balance on mineral fertilizers;


- logistical bottleneck;

- delivery terms;

- package;

- volume of an order;

-delivery basis;

- repayment terms

The price on mineral fertilizers can’t exceed a maximum level of price, which was set at the moment of making a deal.


© 2012 ООО «Менделеевсказот» / LLC «Mendeleevskazot»