Moscow will continue to work with the UN to resume the supply of ammonia via the Tolyatti-Odessa pipeline as part of the grain deal, according to Tass, citing a Nov. 23 meeting between Russian President Vladimir Putin and Dmitry Mazepin, who heads up Uralchem as well as the RSPP (Russian Union of Industrialists and Entrepreneurs) Commission on Mineral Fertilizers Production and Trading.
Togliattyazot is set to supply ammonia, said Mazepin, adding that the Ukrainian side is putting forward a number of political issues on the resumption of transit. Ukraine President Volodymyr Zelensky has said that a prisoner exchange must come before the reopening of the pipeline.
“The parameters, figures, and volumes there are clear. The benefit for all participants of the process is also clear,” said Putin. “We will also work with the UN, with colleagues from the organization. Let’s see how that pans out. You know my position, I am not against it,” he noted.
Mazepin noted that once the grain deal was concluded in July 2022, a memorandum was inked, suggesting that the countries under the auspices of the UN would support the unblocking of the Tolyatti-Odessa ammonia pipeline and the delivery of ammonia produced at Togliattyazot.
Mazepin said the ammonia pipeline is in good condition on the Russian side and believes it can work on the Ukraine side as well. Industry observers fear the pipeline could be damaged during the war.
Mazepin noted that US trader Transammonia Inc. was ready to act as a buyer of ammonia from the Togliatti plant in order to transport it through Ukraine, purchasing it at the Russian-Ukrainian border.
In the meantime, Uralchem plans to commission Russia’s first port for ammonia shipment in Taman by the end of 2023, which will enable the opening of an alternative supply route. According to Mazepin, the company’s investments are expected to total 50 billion rubles (US$824 million). He noted that currently, Russia’s ammonia exports depend on ports in other countries.
“We would like to plug this gap. We are working together with the Industry and Trade Ministry, the Administration of the Krasnodar Region, and all agencies,” said Mazepin. “But we would still like to ask you, as part of the grain deal, to help temporarily open and ensure in Odessa the unloading and transportation of ammonia that may also run to developing countries, including Africa.”
On Feb. 24, Tolyattiazot suspended the transit of ammonia through the Tolyatti-Odessa pipeline due to the situation in Ukraine.