EuroChem’s enterprise may fall under the US sanctions
The ban, imposed by the authorities of Belarus, on the transit of oil products and mineral fertilizers from Lithuania has a knock-on effect on the Lifosa chemical plant (part of EuroChem).
Such an ambiguous decision by the government of Belarus was in response to the refusal of Lithuanian Railways to transport potassium chloride produced by Belaruskali to the port of Klaipeda from February 1 due to the US sanctions imposed last year against Belaruskali and its trader Belarusian Potash Company.
As a result, Lifosa lost the opportunity to transport its phosphorus fertilizers through Lithuania. It may lead to the suspension of their supplies to Ukraine in the amount of 150 thousand tons.
According to the statement of the Head of Lifosa Rimantas Prosevičius, the company is looking for supplying phosphorus fertilizers to Ukraine through other countries, such as Poland or Latvia.
“The losses will be in millions if we close this export direction. So, we’re looking for alternatives through Latvia and Poland, but the logistics will become more expansive,” said Rimantas Prosevičius.
When transporting through Latvia and Poland, a ton of products will increase in price by about 20 and 40 euros, respectively. When transporting by road, the cost increases by 80-90 euros per ton.
If the geopolitical situation gets worse and, for example, the transit of raw materials, especially ammonia, from Russia through Belarus to Lithuania is prohibited, then Lifosa may stop working at all.
“Everything operates fine for now, and we supply sulfur, ammonia, and phosphorus fertilizers. However, if we stop receiving ammonia from Russia, the plant may be closed,” said Rimantas Prosevičius.
Lifosa produces phosphoric acid, monoammonium phosphate and diammonium phosphate.