Russia halts nitrogen, phosphate fertilizer exports to support local farmers

LONDON (ICIS)–The Russian Ministry of Finance is planning to prohibit the export of nitrogen and phosphates fertilizers to support local farmers.

The ministry proposes to add certain categories of fertilizers to the list of goods for which the use of temporary periodic customs declaration, incomplete and periodic customs declaration is prohibited.

According to the document, the changes will affect the export of nitrogen fertilizers (code 3102), as well as diammonium phosphate (DAP), monoammonium phosphate (MAP), and nitrogen, phosphorus, potassium (NPK) fertilizers (code 3105).

Russia is one of the biggest exporters of nitrogen and phosphate fertilizers in the world.

This move comes after the recent increase in global prices in these fertilizers. China already has halted exports of nitrogen and phosphate fertilizers in order to support domestic supply.

At the moment, the Russian government is introducing measures of customs and tariff regulation of the export of certain categories of goods in order to stabilise prices in the domestic Russian market.

Russian President Vladimir Putin earlier instructed the government to develop a set of measures by 1 November to neutralise the risks of negative consequences of energy shortages in Europe, including the destabilisation of the markets for nitrogen fertilizers, metallurgical products and foodstuffs.

According to media reports, one of the options discussed in Russia about fertilizers is to extend the fixing of prices for ammonium nitrate (AN) for the spring sowing period, until May 2022, with a guarantee of priority supplies to the domestic market.

Front page picture: Farmers harvesting in a wheat field in Tbilisskaya, Russia; archive image
Source: Vitaly Timkiv/AP/Shutterstock