Lithuanian phosphate fertilizer subsidiary AB Lifosa, a subsidiary of EuroChem Group AG, and under a temporary administration, plans to resume operations on Aug. 7, according to an Interfax report, citing a Lifosa statement.
Production is expected to resume at about 70% of capacity. Lifosa’s main product is DAP, with a production capacity of some 1 million mt/y.
The temporary administration already has approved the sale of finished product totaling €19 million (approximately $19.8 million at current exchange rates), according to the report, citing Lifosa. Discussions on the renewal of contracts to buy feedstock, including phosphate rock, are reported to already be underway.
The Kėdainiai-based fertilizer producer was put under a temporary administration by the Lithuanian government (GM June 24, p. 31). Lifosa had been forced to halt operations in April after banks froze the company’s accounts the previous month after the European Union (E.U.) imposed sanctions on EuroChem’s former controlling shareholder and CEO Russian billionaire Andrey Melnichenko on March 9 (GM April 15, p. 1 & p. 35; March 11, p. 1).
EuroChem has been exploring avenues to appeal against the sanctions targeting Lifosa, and earlier in June emphasized that the Zug, Switzerland-based fertilizer group had no plans to sell the Lithuanian plant, according to a Tass report, citing EuroChem CEO Segey Tverdokhleb.
EuroChem, in a June 21 statement on the group’s ownership and control, emphasized that the Zug-based group “is not sanctioned, has never been sanctioned” and that it “complies with all applicable laws at all times.”
On the ownership of the fertilizer group, it said “EuroChem is majority-owned and controlled by E.U. trustees of a trust, whose beneficiary, Aleksandra Melnichenko, has no majority ownership of, nor influence over, EuroChem.”
“Therefore, EuroChem is not controlled by a sanctioned person,” said the group.