Russia’s exports of fertilizers in the first five months of this year declined by 24% year-over-year to 12.5 million mt, according to an Interfax report early this week, citing sources close to Russian Railways (RZD).
According to RZD, inland exports dropped 48% to 3.9 million mt, while fertilizer exports through ports were down by only 5% to 8.6 million mt.
A separate Interfax report cited the President of the Russian Association of Fertilizer Producers (RAPU), Andrey A. Guryev, as putting the fertilizer export decline at about 20% since the start of this year.
Guryev, former CEO of PhosAgro PJSC, noted that due to problems with the purchase of equipment and components, the Russian fertilizer industry is already adjusting its investment plans.
Guryev resigned his position as head of PhosAgro on March 10 following his inclusion on the European Union’s expanded sanctions list against Russia (GM March 11, p.1 & p. 34).
It emerged this week that the Russian fertilizer group has still not taken a final investment decision on a proposed new ammonia and urea production complex at Cherepovets.
According to an Interfax report, citing PhosAgro’s new CEO, Mikhail Rybnikov, the group sees risks in implementing the project, primarily from the point of view of its foreign partners. This latter is assumed to mean with project contractors.
Rybnikov, who was speaking on the sidelines of the 2022 St. Petersburg International Economic Forum (SPIEF), said PhosAgro was still having discussions on the project.
The Russian fertilizer group was believed late last year to have taken the decision to go ahead with the new RUB120 billion ammonia and urea complex, with construction planned to start in 2022 and first product expected at the end of 2025 (GM Nov. 26; Dec. 31, 2021). A production capacity of 1 million mt/y of ammonia and up to 1 million mt/y of urea was planned.