Russia’s Port of St Petersburg is reported to have stopped the transshipment of ammonium nitrate (AN) due to concerns about attacks by Ukrainian drones, according to reports this week by UAWire and Pravda, citing the Kommersant newspaper.
According to the reports, the port authority halted AN handling operations at the port in February following a directive from the St Petersburg Governor. The directive follows a drone attack on the St Petersburg oil terminal in January and comes amid increasing concerns that an attack on the port’s AN transshipment terminal could cause a disaster.
According to Kommersant, the port handles about 3 million mt/y of AN, but it is unclear if this volume is a current level or the pre-Western sanction level.
Russian Railways from Feb. 13 imposed restrictions on the loading of AN destined for St Petersburg’s Bronka terminal and to rail unloading stations at the port. The ban was initially set to run until the end of February but was then extended through March. The rail company’s decision followed the St Petersburg authorities’ ban on AN transshipment by the port.
The ban has left AN producers and exporters who previously shipped through St Petersburg looking for alternative export options. Unnamed sources contacted by the media outlets pointed to the lack of other Russian port capabilities to handle AN, and much of the capacity that exists is already fully utilized, they said.
AN transshipment is most likely to be shifted to the Russian Baltic port of Ust-Luga, according to Kommersant. But infrastructure upgrades will be required at the port, and approvals and installation of the new equipment at Ust-Luga and at other suitable ports will take time and investment. Furthermore, sources told the newspaper that domestic demand for AN is currently high during spring planting.
The last available full-year Russian export figures from Trade Data Monitor show the country exported a total of 4.3 million mt of AN in 2021, before Western sanctions were implemented, of which roughly 46% was exported to Brazil.
Brazil in recent years has relied on Russia for much of its imported AN. In full-year 2023, it imported 1.127 million mt of AN from Russia, Trade Data Monitor reported, out of an annual total of 1.137 million mt exported from Russia.