Russian government decided to temporarily limit fertilizer exports
Chairman of the Russian government Mikhail Mishustin announced the six-months limitation of exports of two groups of mineral fertilizers from Russia to prevent the rise in food prices.
“Following the instruction of the President, the government introduces temporarily restrictions on the export of nitrogen and complex nitrogen-containing fertilizers. The exports volume of nitrogen and complex fertilizers shouldn’t exceed 5.9 million tons and 5.35 million tons, respectively,” said Mikhail Mishustin.
According to his statement, to impose these measures, it’s necessary to adopt a government decree and deal with some customs issues. The Ministry of Industry and Trade of Russia in cooperation with the Ministry of Agriculture of Russia will be responsible to distribute volumes among exporters.
“The limitation on the export of nitrogen and complex fertilizers from Russia can, of course, affect some domestic producers but not all of them. For example, it may affect the revenues of Acron and EuroChem since, in 2019, the European Commission introduced a five-year protective duty against their carbamide-ammoniac compound. On the other hand, chemical companies will be able to increase sales within Russia, thereby providing farmers with everything they need,” said Andrey Viktorov, Editor of Fertilizer Daily.