“Manufacturer support”
“Existing export quotas for Russian mineral fertilizer producers have been temporarily increased by approximately 700,000 tons. The resolution was signed by Prime Minister Mikhail Mishustin. The decision will be valid until 31 May 2022. says on the cabinet website.
Thus, the nitrogen fertilizer export quota increased by 231 thousand tons, now it is around 5.7 million tons. The export quota for complex fertilizers increased by 466 thousand tons to approximately 5.6 million tons.
It was noted that until May 31, these quotas “do not apply to the supply of fertilizers to the Donetsk and Lugansk People’s Republics, and to Abkhazia and South Ossetia.”
“These measures are necessary to support fertilizer producers, who are at risk of cutbacks due to low domestic market demand and sanctions from unfriendly states. At the same time, manufacturing companies rely on the interest in fertilizers from states that do not participate in the sanctions restrictions,” he said.
“Withdrawal of fertilizers from sanctions”
A month after the start of the Russian military special operation and the adoption of the first sanctions against the Russian Federation, on March 24, the United States decided to adjust the restrictions and protect itself from the shortage of chemical products. Therefore, Russian mineral and organic fertilizers were considered basic products and excluded from sanctions.
United States Treasury public the corresponding new general license. According to the document, Russian fertilizers were included in the same list as agricultural products, drugs and medicinal products. In addition, food products (excluding seafood and alcohol), vitamins and minerals, nutritional supplements and vitamins, bottled water, and live animals and feed were exempted from restrictions in the United States.
The Americans allowed any trading operations with them, including re-export. However, transactions with goods from the list are prohibited if the Bank of Russia, the National Wealth Fund, the Ministry of Finance of Russia or any sanctioned bank are involved in any processing of transactions.
The European Union has not yet followed the example of the USA. According to the fifth EU sanctions package, adopted on 8 April, imports of fertilizers, timber, cement, seafood and alcoholic beverages from Russia are banned.
food crisis
How reported On April 4, Izvestia, a member of the German government’s expert council on economic development under Veronica Grimm, has already started a food crisis in Germany.
“High gas prices increased the cost of fertilizer (gas is an important raw material for fertilizer production) and led to famine. In addition, agricultural products from Russia and Ukraine will not be exported this year. “For industrialized countries, this means rising food prices, while for developing countries it can lead to shortages,” he explained.
13 April International Monetary Fund, World Bank, UN World Food Program and World Trade Organization public Joint statement calling for urgent action to ensure world food security against the background of events in Ukraine.
“Rising food prices are exacerbated by the sharp rise in the cost of natural gas, a key component of nitrogen fertilizers. “The rise in fertilizer prices, as well as the significant drop in global supply, have significant implications for food production in most countries, including major producers and exporters.”
The organizations also called on the world community to “release the emergency food supply”, as well as increase agricultural production and financially support countries in need.
Source: Gazeta
Barbara Dickson is a seasoned writer for “Social Bites”. She keeps readers informed on the latest news and trends, providing in-depth coverage and analysis on a variety of topics.