The United Nations (UN) confirmed that it is in negotiations to reopen the ammonia pipeline from Russia through Ukraine to the port of Odessa. International ammonia trader Trammo Inc., New York City, also confirmed that it had been approached by the UN to assist in the project.
“Trammo is happy to cooperate with efforts of the United Nations to allow shipments of ammonia from Ukraine to resume,” said Trammo CEO Ed Weiner. “Ammonia is an essential ingredient in fertilizer production. The absence from the market of ammonia formerly shipped through Ukraine has caused substantial hardship in countries dependent on that product. We believe that resumption of shipments will help to stabilize fertilizer prices worldwide and to avoid a global food crisis.”
The 2,471 km (1,535 mile) pipeline from Togliatti to Odessa can carry approximately 2.5 million mt/y of ammonia.
The ammonia, reportedly to be supplied by Russian producer Uralchem, would be purchased by Trammo at the Russia/Ukraine border. It would travel on down the pipeline and be exported from the ports of Odessa.
Russia has complained that its own products were not being exported under the Black Sea Grain Initiative that was signed on July 22. The Initiative was signed by Russia, Ukraine, the UN, and Turkey, and was to provide for the safe export of “grain, foodstuffs, and fertilizers, including ammonia.”
The 120-day Initiative expires in November, and UN Secretary-General Antonio Guterres said in an interview that it was clear that a successful ammonia deal could create conditions for the extension of the Initiative beyond November.
Market watchers offered quick concern over the safety of ammonia being transported through a war zone and whether ship owners would risk picking up the product (see Ammonia Market Section). However, if Russia is benefiting from the ammonia sale, it is arguable that it would avoid damaging the pipeline or vessels.