EuroChem Group AG has confirmed that its Lithuanian phosphate fertilizer producing subsidiary, AB Lifosa, has reached an interim agreement with the government-appointed administrator, allowing the resumption of limited production (GM Nov. 11, p. 31; Nov. 4, p. 34).
Lifosa has been under the control of a temporary administrator since the end of May 2022. Production was halted in mid-September due to a shortage of critical raw materials, including ammonia, and high gas prices (GM Sept. 16, p. 29; Sept. 9, p. 28).
The Lithuanian phosphate producer had only resumed operations on Aug. 7 after being forced to stop operations in April following its banks freezing of the company’s accounts the previous month after the European Union (EU) imposed sanctions on EuroChem’s former controlling shareholder and CEO, Russian billionaire Andrey Melnichenko, on March 9 (GM April 15, p. 1; March 11, p. 1).
EuroChem Executive Chairman Samir Brikho, in a media statement, confirmed “recent cooperative work with the administrator resulted in the lifting of some supply restrictions,” allowing for a reduced-capacity restart in December “providing sourcing can be secured immediately.”
But he warned “to ensure sustainable economic operations beyond December, additional steps will need to be taken with regards to Lifosa obtaining access to competitively-priced raw materials and the permission to market its products to a broader customer base.”
Brikho said this requires Lifosa’s “quick reintegration into the EuroChem sales and procurement network.”
Lifosa’s main product is DAP, with a production capacity of some 1 million mt/y.
Lithuania’s only ammonia producer, AB Achema, partly resumed production on Nov.1, having suspended operations at the beginning of September due to a sharp increase in natural gas prices