EuroChem may face difficulties in Europe
Sanctions of the European Union against Andrey Melnichenko, the owner of EuroChem, may have tough negative consequences for his activities, believes the information and analytical service of Fertilizer Daily.
“In 2021, EuroChem shipped 5.8 million tons of products to Europe, which accounted for 21% of the company’s total sales. In monetary terms, this is equal to $2.552 billion or 25% of revenue. If consumers in the countries of the European Union refuse to purchase mineral fertilizers from EuroChem, its financial indicators may fall by the end of the 1Q2022,” Fertilizer Daily commented.
EuroChem’s foreign enterprises, Lifosa (Lithuania) and EuroChem Antwerpen (Belgium), may face difficulties as well. They are the first to challenge the termination of shipments to the European market.
“And finally, negotiations between EuroChem and Borealis Group on the purchase of its nitrogen business may be suspended. Taking into account sanctions against Andrey Melnichenko, the management of Borealis Group may refuse to deal with the “toxic” EuroChem,” Fertilizer Daily added.