Russia bans export of ammonium nitrate for 2 months

The difficult situation on the mineral fertilizers market caused by a reduction in production due to rising gas prices is complicated by political tension between Russia and the West, which leads to higher prices for oil, gas and other goods, including fertilizers.

Russia is warming up prices by introducing quotas for grain exports and reducing gas supplies to Europe, and now it has decided to limit the export of ammonium nitrate.

Prices for ammonium nitrate increased 2.5-3 times compared to last year amid a rise in gas prices and a decrease in supply. In Ukraine, saltpeter costs 26-27 thousand UAH/ton, CAS – 26-28 thousand UAH/ton. restrictions on exports from Russia will increase the shortage of fertilizers in Ukraine, which will become an additional pressure factor in the hybrid war between the countries.

Starting from February 2, The Russian government introduces a two-month ban on the export of ammonium nitrate in order to ensure a successful sowing campaign and smooth operation of the industrial industry. After April 2, when producers receive the necessary volumes of saltpeter, and the demand for it in the domestic market decreases, exports will be resumed.

The need for additional fertilizers arose due to forecasts of early spring in certain regions of Russia, in particular the Southern and North Caucasus districts.

For the period December 1, 2021 – May 31, 2022, Russia has a quota for the export of ammonium nitrate, within which 370 thousand tons have already been shipped. given that the annual quota remains unchanged, the temporary restriction will not affect the total export of saltpeter, but it will provide farmers with the necessary fertilizers and stop their rise in price during the peak season.

Almost 60% of the ammonium nitrate produced in the Russian Federation is consumed domestically, including 45% in agriculture and 15% in industry. Its largest producer is Akron, which produces 30% saltpeter, followed by EuroChem, Uralchem and SDS-Azot.

In 2022, Russia plans to produce more than 11 million tons of ammonium nitrate, of which 5.2 million tons will go to farmers, 2 million tons to industry, and the rest will be exported.