Ready to expand exports
A meeting between Vladimir Putin and Dmitry Mazepin, the head of the RSPP commission focused on the production and market of mineral fertilizers, highlighted Uralchem as a major producer of nitrogen and potash fertilizers and ammonia. The president emphasized the scale of Uralchem’s output and its strategic role in Russia’s fertilizer sector.
“I know the work is moving forward and making solid progress despite artificial barriers put up by some countries. It seems the impact is mostly felt in world markets. We are prepared to expand this effort with all our partners without exception.”
Mazepin noted that 2022 would see fertilizer production nearly match the previous year. He added that the priority for Russia remains ensuring deliveries to the domestic market. The head of Uralchem explained that, in collaboration with the Ministry of Agriculture and the Ministry of Industry and Trade, Russian farmers receive fertilizer at fixed prices. When the Ministry of Agriculture set new policies, cost indexing was kept at inflation levels. The entrepreneur stated that in 2022 there was no hesitation or problem with the farmers.
He cited that Russia produced 42 million tons of fertilizer and allocated 12 million tons for domestic needs, while the domestic market continued to grow at a rate of 7 to 8 percent annually.
Clogging of fertilizers in ports
He noted that additional export volumes were already arranged while fulfilling domestic commitments. With the introduction of prohibitive sanctions, companies faced new obstacles. A sizable portion of shipped fertilizer became stuck in European ports. Specifically, 262,000 tons were blocked at Uralchem, 52,000 tons at Akron, and about 100,000 tons at EuroChem in ports across Estonia, Latvia, Belgium, and the Netherlands.
Mazepin described the current situation as very challenging. He and colleagues are exploring multiple avenues to supply fertilizers to emerging markets, including Africa, to mitigate the disruption.
He added that the Latvian side did not help resolve the blockade effectively. He described cases where 262,000 tons were blocked, with 55,000 tons still on board. A ship carrying 40,000 tons loaded in St. Petersburg arrived in Riga for further loading in February but was halted by sanctions, leaving the crew in uncertain conditions for months. This situation illustrated the human and economic toll of the sanctions on maritime logistics.
In response, Mazepin stated that the company decided to donate 23.5 thousand tons of fertilizer to Africa. The shipment reached the port of Togo under an agreement with the African Union President, and the supplies reached Burkina Faso, a country facing severe difficulties.
seeks help from the UN
Following the gratuitous aid to Africa, fertilizer manufacturers turned to the United Nations for assistance in unlocking the frozen shipments in Europe. The UN reportedly agreed to help coordinate a humanitarian and commercial path to move the fertilizer, including chartering ships and arranging movement to port facilities in Mozambique, with consideration given to Malawi as part of a broader plan. The entrepreneur stated that great problems with fertilizers remained and that the UN collaboration could help unlock the 260,000 tons of fertilizer held up in Europe.
Mazepin urged President Putin to confirm Russia’s call to the UN and the African Union to facilitate the release of those blocked shipments. He noted ongoing discussions with the UN Secretary General and related agencies to ensure the necessary operations proceed smoothly and that tanker crews and ships are supported during the process. He mentioned that African leaders who did not fully understand the situation had reached out directly for clarification, underscoring the urgency of delivering aid to developing nations and supporting traditional markets.
Putin stressed the need to protect the interests of domestic agricultural producers and to maintain strong ties with traditional customers and developing nations. He called for a broad approach, inviting African partners to participate in trade expansion and ensuring a balanced, commercially sound strategy to sustain markets. He also encouraged Mazepin to broaden trade relations beyond Russia’s near neighbors to include Kazakhstan and Belarus, noting Belarus as a major partner.