Gazprom denies at fault for PhosAgro sulfur shortfall – Alert

Gazprom Sulphur LLC has responded to PhosAgro media statements last week that the phosphate producer had been forced to suspend part of its mineral fertilizer production at the Balakovo branch of OJSC Apatit due to Gazprom Sulphur’s failure to fulfil its contractual obligations (GM Nov. 30. p.13). In an emailed statement to Green Markets, Gazprom Sulphur’s press office said the company is fulfilling its contractual obligations for the supply of liquid sulfur to Apatit, and that for more than five months in 2015, shipments of liquid sulfur to Apatit "exceeded the monthly contractual volume by some 18 percent".

"OJSC Apatit regularly requests additional volumes, but the ability to supply additional volumes to the company is limited by the shortage of specialized railcars for the transport of liquid sulfur on the Russian market," Gazprom Sulphur said. The Gazprom unit said that it also is meeting its monthly agreed liquid sulfur shipment volumes to PhosAgro Cherepovets. The sulfur supplier added that there is enough liquid sulfur available for all consumers, but there are not enough specialized railcars to transport the full quantity needed by Russian buyers. It said some consumers have purchased the additional specialized railcars for liquid sulfur carriage and "solved their problems that way." Gazprom Sulphur said it has informed the Russian government of its position.