DUSHANBE, January 31, Asia-Plus – After being closed for a month, a Tajik-Cypriot JV TajikAzot (Sarband-based plant producing mineral fertilizers) intends to resume its work in February, the TajikAzot director general Tohirkhon Ghoziyev said.
TajikAzot stood idle in January, refusing to pay for natural gas at new domestic prices set by the Ministry of economy and Trade (MoEDT). Losses of TajikAzot caused by a month-long idleness owing to natural-gas cuts have reached more than 1 million somonis, the TajikAzot general director Tohirkhon Ghoziyev said.
We will recall that Uzbekistan’s decision to raise the price of imported natural gas from $55 to$100 per 1,000 cubic meters has led to a 69.7 percent increase in the domestic price of natural gas in Tajikistan. Starting from January 1, the price of natural gas for the public, enterprises and organizations, except TajikAzot and Tojikcement, was set the rate of $136 per 1,000 cubic meters. For TajikAzot and Tojikcement, the gas price was set at the rate of $129 per 1,000 cubic meters.
However, this price is unacceptable for TajikAzot and the enterprise applied to MoEDT asking for reviewing the set rates but the ministry refused their request.
“We have failed to find way out of this situation and therefore we have to buy gas at the price set by the ministry for us — $129 per 1,000 cubic meters,” Ghoziyev said, adding that they have spent 1.5 million somonis for major repairs to the enterprise this month.
Taking into account that Uzbekistan has reduced gas supplies to Tajikistan from 65,000 cubic meter per hour to 50,0000 cubic meters per hour, TajikAzot will able to keep operational only one of its two production lines.
“To resume functioning we have to realize at least a half of products amassed at our warehouses,” Ghoziyev said, noting that they have 25,500 tons of last year’s carbamide for $5.75 million amassed at their warehouses.
“Our product was not much in demand even last year when the price of one ton of carbamide produced by the enterprise was $130,” said Ghoziyev, “If we pay for natural gas at the rate of $129 per 1,000 cubic meters, the price of one ton of carbamide will rise to $300.” A sudden spike in mineral fertilizers will lead to increase in the price of ram produce in the country, according to him.
The closed joint-stock company TajikAzot is the joint venture launched in cooperation with Cypriot company Highrock Holding Limited in March 2002. The JV was established on the basis of the plant for producing mineral fertilizers that was constructed in Sarband in 1964.
Tajikistan owns 20 percent of the shares and the Cypriot company assumes the 80 percent ownership interest in TajikAzot.
