PhosAgro increased exports by 8% in four months

The largest producer of phosphate fertilizers in Russia, the group “Phosagro» in January-April increased the export of its products by 8%, said Alexander Sharabaiko, deputy general director of the company for finance and international projects.

“For four months, exports grew by 8% year-on-year. To Europe – minus 10%, to Latin America – plus 50%,” Sharabaiko said as part of SPIEF (quote according to TASS). He added that there was a drop in supplies to Southeast Asia.

At the same time, the company continues to maintain the volume of exports to India as well as last year. According to him, last year supplies to the country were increased by more than five times – up to 2.7 million tons. At the same time, Sharabaiko called the Russian market a priority. “Everything that remains after meeting the growing needs of Russian farmers is exported,” he added.

In January “Phosagro» suggested adjust the export duty parameters by lowering the cut-off price for nitrogen and potash fertilizers. According to Interfax, which reported this with reference to sources, the company’s CEO Mikhail Rybnikov sent such a letter to Russian President Vladimir Putin in December 2022, and he instructed the government to consider the company’s proposal.

In a letter from the CEO,Phosagro» it was noted that under the existing parameters of export duties, nitrogen and potash fertilizers are not subject to duties, since their prices by the beginning of 2023 fell below the cut-off price. At the same time, these types of fertilizers account for more than 60% of exports in the industry.

The export duty on fertilizers in the amount of 23.5% is valid from January 1 to December 31, 2023. The duty is applied if prices on world markets exceed the level set by the Russian government – the so-called cut-off price. For all types of fertilizers, a single threshold was set – $450 per 1 ton. If the price of fertilizers is up to $450 per 1 ton, the duty rate will be zero. It was assumed that for phosphorus and nitrogen fertilizers the cut-off bar would be higher – $500 per 1 ton, for potash fertilizers it would be lower – $400 per 1 ton. This was announced at the beginning of October 2022. said Finance Minister of the Russian Federation Anton Siluanov.