The United States has moved to ease sanctions on mineral fertilizer imports from Russia. Citing information from Kommersant, a new general license for fertilizer imports has been issued by the US Treasury Office of Foreign Assets Control.
Agricultural products, medicines and medical goods, and mineral fertilizers are listed among vital items. In addition, food products (excluding seafood and alcohol), vitamins, minerals, nutritional supplements, bottled water, live animals, and animal feed were exempted from restrictions in the United States.
The change means that business dealings with these goods, including re-export, are now permissible. At the same time, transactions involving listed goods are prohibited if they involve the Bank of Russia, the National Wealth Fund (NWF), the Russian Ministry of Finance, or any sanctioned banks in processing a transaction.
According to sources cited by Kommersant, the Treasury Department’s document carries an extraterritorial effect, suggesting that allied nations are likely to align with the policy.
Analysts note that the decision to lift sanctions on fertilizers may be tied to a global fertilizer shortage caused by logistics disruptions. Major container carriers MSC, Maersk, and CMA CGM halted shipments from Russia as of March 1. With shipments increasingly coming from smaller firms, foreign buyers fear potential shortages.
Representatives in the agrochemical market say that lifting sanctions could help restore normal logistics. They expect the large container operators to resume handling essential goods and humanitarian cargo from Russia, easing current bottlenecks.
Payments and duties on Russian fertilizers might be waived, though anti-dumping measures persist in both the United States and Europe. In the United States, Russian shares account for about 6% of potassium fertilizers, 20% of diammonium phosphate, and 13% of carbide fertilizers. Europe relies more heavily on Russian chemical imports, with dependence estimated to be two to three times higher than in Russia itself.
Experts warn that if Russian producers redirect more shipments toward Asian markets, Europe and North America could face fertilizer shortages for several months, impacting food production globally. The US license signals that legal structures are unstable and that restrictions on Russia can be relaxed in sensitive areas, noted cross-border transport specialist Maria Lyubimova.
In mid-March, Andrey Melnichenko, a Russian billionaire and former EuroChem owner, warned of a global food risk if the conflict persists. He argued that agriculture and food would suffer as fertilizer prices rise, making farming unaffordable for many producers.
Such concerns extend to food supply chains already strained by the coronavirus pandemic, with fertilizer shortages potentially driving further price pressures on food in Europe and in developing nations. Earlier, the Ministry of Industry and Trade advised Russian fertilizer producers to limit exports due to ongoing logistics problems, while highlighting that shipment disruptions could threaten national security and food availability for hundreds of millions in the medium term.
Overall, the evolving layout of global fertilizer trade could shift flows toward Asia, possibly triggering temporary shortages in Europe and North America. Observers note that the US Treasury license highlights the possibility of recalibrating sanctions in response to practical, market-driven needs while maintaining safeguards against sensitive, strategic sectors.
Source attribution: Kommersant reporting and expert commentary are cited for context on policy shifts and market implications.