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Russia will limit the export of nitrogen fertilizers

CIS GAS MONETISATION

Russia will limit the export of nitrogen fertilizers

Russian government will introduce quotas for the export of fertilizers from December 1, 2021 to May 31, 2022. Against the backdrop of this news, share price of "Akron" and "PhosAgro" fell on the Moscow Exchange - RBC

The Russian government will restrict the export of nitrogen and compound fertilizers with a nitrogen content for a six-month period. This was announced at a government meeting by Prime Minister Mikhail Mishustin.

According to the Prime Minister, the permitted export volume for nitrogen fertilizers will amount to 5.9 million tons, and 5.35 million tons for complex fertilizers. The Ministry of Industry and Trade of the Russian Federation together with the Ministry of Agriculture of the Russian Federation will distribute volumes between exporters until November 25.

We do not expect this quota to negatively affect capacity utilisation, which is now close to 100%

Maxim Kuznetsov Director of the Russian Association of Fertilizer Producers

According to Kuznetsov, export quotas will support a favorable situation in global markets, so Russian exporters can benefit from this.

After the publishing of news about the restriction of the export of nitrogen and complex fertilizers, Akron's shares on the Moscow Stock Exchange fell by 7.2% to RUB 8896 per share. PhosAgro fell in price by almost 4% - to 5432 rubles.

Due to the deficit, the prices of nitrogen fertilizers have risen since the beginning of the year by 183% (to over $ 700 per ton) in the world market. The rise in gas prices forced many European producers to cut their production of fertilisers - around 20% of their capacity was shut down.

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