E.U. Imposes Cap on Imports of Russian Potash and Complex Fertilizers

The European Union (E.U.) has imposed a cap on imports of Russian potassium chloride (CN 3104 20) and of Russian NPKs (CN 3105 20) and PKs (3105 60) and other fertilizers containing potassium chloride into the Bloc as part of its latest package of sanctions against Russia agreed by Member States on April 8 (GM April 8, p. 1).

According to its Official Journal, the E.U. has set a quota of 837,570 mt of potassium chloride (CN 3104 20) starting July 10, 2022, through July 9, 2023, and 1,577,807 mt combined of the specified NPKs, PKs, and other fertilizers containing potassium chloride for the same period.

According to some industry sources, the European Commission (E.C.) was not able to push through a ban on Russian imports of potassium chloride. Instead, imports were capped at historic levels. Last year, the E.U. imported about 783,240 mt of all grades of Russian potassium chloride, according to Trade Data Monitor. The imports from Russia accounted for some 14.5 percent of the Bloc’s potash imports in 2021.

The restrictions do not apply to shipments until July 10 under contracts signed prior to April 9, 2022, the day the new sanctions came into force.

The cap on Russian imports of potassium chloride was a way to avoid the ban on potash imports from Belarus being circumvented via Russia. The E.C. on April 8, announcing the agreement of Member States to adopt the new sanctions package, said it was also including “an anti-circumvention” measure against potash imports from Belarus.

The E.U. first imposed a ban on certain grades of Belarusian potash in June 2021 (GM June 25, 2021), and subsequently expanded the import ban in February of this year to cover all grades of Belarusian potash, and crucially, imports of product with a potassium content evaluated as K2O by weight, exceeding 40 percent but not exceeding 60 percent on the dry anhydrous product (GM March 4, p. 30). The move, part of wider sanctions package against Belarus, was in response to the country’s role in supporting Russia’s invasion of Ukraine.

The. E.U. has typically imported about 14-18 percent of its annual potash requirements from Belarus, according to Trade Data Monitor.

Combined Nomenclature
(CN) Code
Product
3104 20 Potassium chloride
3105 20 Mineral or chemical fertilizers containing the three fertilizing elements nitrogen, phosphorus, and potassium
3105 60 Mineral or chemical fertilizers containing the two fertilizing elements phosphorus and potassium
ex 3105 90 20 Other fertilizers containing potassium chloride
ex 3105 90 80 Other fertilizers containing potassium chloride

The E.U. in this latest sanctions package against Russia has not imposed restrictions against imports into the Bloc from Russia of other types of fertilizers.

As previously reported, the new sanctions do include an entry ban on Russian flagged vessels and Russian-operated vessels from accessing to E.U. ports. However, the E.U. has made exemptions to this ruling to cover what it describes as “essentials” cargo, such as agricultural and food products, humanitarian aid, as well as energy, among others.

The Official Journal listed Russian flagged and Russian-operated vessels with cargoes of anhydrous ammonia (CN2814 10 00) as excepted from the ban. The E.U. imported 3.9 million mt of ammonia in 2021, of which Russian tons were 997,521 mt, or 26 percent of the total, according to Trade Data Monitor.

As reports of more atrocities at Russian hands emerge from Ukraine, the E.U. is looking at a fresh set of sanctions against Russia. The E.U. is moving toward adopting a phased-in ban on Russian oil intended to give Germany and other countries time to prepare alternate suppliers, the New York Times reported, citing officials and diplomats. A Russia oil embargo would not be put up for negotiation until after French elections.