Ready to expand exports
Vladimir Putin meets with Dmitry Mazepin, head of the RSPP commission for the production and market of mineral fertilizers, Uralchem. The President noted that Uralchem is one of the largest producers of nitrogen and potash fertilizers and ammonia.
“I know that the work is going on, it is progressing quite successfully despite the artificial barriers created by some countries. As far as I understand, only world markets suffer from it. We are ready to expand this work with all our partners without exception.”
Mazepin noted that in 2022, almost as much fertilizer will be produced as before. At the same time, according to him, the priority for Russia “remains to be delivery to the domestic market.”
The head of Uralchem noted that, together with the Ministry of Agriculture and the Ministry of Industry and Trade, Russian farmers receive fertilizer at fixed prices. When the Ministry of Agriculture made its decision, it announced that cost indexation was only done at the level of inflation. The entrepreneur stated that in 2022, “there was no hesitation or problem with the farmers”.
According to him, 42 million tons of fertilizer was produced in the Russian Federation and 12 million tons of this was given to the domestic market. At the same time, “the domestic market is growing at 7-8 percent per year.”
Clogging of fertilizers in ports
“At the same time, we have additional volumes that we have provided for export in the past, while delivering to the domestic market. With the introduction of prohibitive sanctions, companies naturally faced problems.”
According to him, “quite a large amount of manure was frozen in European ports.” In particular, 262,000 tons were frozen at Uralchem, 52,000 tons at Akron and about 100,000 tons at Eurochem in the ports of Estonia, Latvia, Belgium, the Netherlands.
Mazepin considers the current situation “really difficult”. He said he and his colleagues are trying to “solve these problems in different ways” by trying to supply fertilizers to emerging markets, including Africa.
According to him, the Latvian side did everything so that this situation would not be resolved somehow.
“About blocked fertilizers. If you see 262,000 tons blocked, a total of 55,000 tons are on board. Uralkali in January, St. He loaded a 40,000-ton ship in St. Petersburg. This ship arrived in Riga port for additional loading in February. Sanctions were imposed, the ship was on the side of the road, and for eight months the ship has been on the side of the road, neither able to dock nor exit. What happens to the crew can only be guessed at,” added the head of Uralchem.
Mazepin said that his company has decided to supply 23.5 thousand tons of fertilizer to Africa free of charge. The ship reached the port of Togo in agreement with African Union President Maki Sall. All fertilizers have come to an end in Burkina Faso as the country is in “severe difficulties”.
seeks help from the UN
Mazepin said that after the gratuitous aid to Africa, representatives of fertilizer manufacturers turned to the UN to “help us unlock our fertilizers” in European countries. And the world organization responded.
“We agreed with the UN that we will transfer money to the UN, the UN will charter the ship, the ship will then approach the Netherlands, receive the free cargo and go to the port of Mozambique since Malawi, as the UN believes. There are great problems with fertilizers,” the entrepreneur said.
He also urged Putin to confirm Russia’s call to the UN and the African Union to help unlock all of the 260,000 tons of fertilizer frozen in Europe.
“You know that we are in contact with the relevant structures with the UN Secretary General, Mr. Guterres. Therefore, all our colleagues will be given the necessary command to provide you with the necessary assistance.” replied.
He added that the leaders of many African countries, who did not understand what was happening, contacted him directly on this issue. According to the head of state, it is not clear to them why “help is always needed to the poorest countries”, but why “even free supplies” from Russia are “barred”. Putin is sure that this is “totally unacceptable”.
“Of course, first of all, to ensure the interests of our very well-performing agricultural producers, to support your traditional customers, consumers, as well as our friends in developing countries, we now all call African countries. “Putin will be humanely correct and ultimately commercially correct, which means you will support your markets.”
Finally, he urged the neighbor Mazepin to develop trade and relations not only with Kazakhstan, but also with Belarus, as it is “Russia’s largest partner”.