The Russian chemical industry stands on the verge of a boom
The total investments of enterprises-members of the Russian Fertilizer Producers Association (RFPA) are estimated at more than 1.6 trillion rubles (approximately $17.7 billion) until 2026.
These funds are necessary to meet the growing needs of Russian farmers in mineral nutrition systems to improve the quality and yield of agricultural products. It will also help to improve the products’ competitiveness in the global market, as well as to maintain the competitive advantages of Russian producers of mineral fertilizers in foreign markets.
The investment priority of these projects is the introduction of the best available technologies in the key areas of activity of the mining and chemical industry. It includes the development of the most important deposits of mineral raw materials and their deep processing, production of high-tech products, modernization and technical re-equipment of infrastructure, energy efficiency and resource conservation, and strict compliance with Russian and international environmental requirements.
“The key factors determining the portfolio of development projects are the interests of our main consumers — Russian farmers, as to the domestic market we supply more products than to any other country in the world. The Russian agro-industrial complex is one of the most stable and dynamically developing in the world, and investments in agricultural technologies will form the basis of its growth in the long-term prospects,” said Andrey Guryev RFPA President and PhosAgro CEO.
According to the forecast of the Russian Fertilizer Producers Association, as a result of the implementation of investment projects by 2026, the total production of industrial enterprises will increase by 36.5% to 34 million tons.
“Russia fully provides itself with mineral fertilizers, holding the second place in the world in the production of mineral fertilizers,” noted Andrey Guryev. “The growth in production volumes and the introduction of the best available technologies will provide confident support for the implementation of two main goals of the industry: the development of domestic consumption of mineral fertilizers and the strengthening of the competitiveness of Russian producers in global markets.”
Over the past 5 years, the consumption of mineral fertilizers in Russia has grown by 1.5 times to a record 4 million tons. According to the forecast of the Ministry of Agriculture of Russia, this figure will double in the next few years. The current and future growth in demand for mineral fertilizers in Russia is supported by large-scale investments in the development and modernization of production facilities.