2022-09-29

Putin announced the readiness of Russia and Belarus to saturate the markets with fertilizers

According to Putin, the two countries account for 15% of world trade and 25% for some types of fertilizers. The EU previously restricted the import of fertilizers from the two states, the US, in turn, excluded them from the sanctions lists

Vladimir Putin and Alexander Lukashenko

Russian President Vladimir Putin discussed with his Belarusian counterpart Alexander Lukashenko the situation with the supply of food and fertilizers to world markets. According to him, Moscow and Minsk are ready to take all necessary actions to meet the needs of the markets due to interruptions in supplies.

“We are the largest fertilizer supplier to the world market <…>. You and I agreed to do everything that depends on us, to take all the actions that depend on us, in order to satisfy the demand of our consumers, our clients, — Putin said at a meeting in St. Petersburg (TASS quote).

Putin noted that 15% of world trade and 25% for some types of fertilizers— it is “a very significant amount.”

After the start of the Russian special operation in Ukraine, Western countries have already introduced several packages of sanctions against Moscow and Minsk, which have exacerbated the problem of food supplies and mineral fertilizers. In early March, the Ministry of Industry and Trade warned of the risk of a collapse in the global fertilizer market due to problems with the supply of Russian goods to foreign countries.

After that, the US Treasury excluded fertilizers, medical equipment and medicines from Russia from the sanctions list. Washington allowed the export, import and re-export of these goods. At the same time, sanctions against most Russian financial, insurance and logistics companies continue to apply.

Nevertheless, in early April, the European Union limited the import of Russian-made fertilizers: the quota for potassium chloride will be 837.57 thousand tons, while the quota for other fertilizers containing potassium will be 1.57 million tons. European countries have also adopted restrictions on the purchase of fertilizers from Belarus.

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In mid-April, Russia introduced export quotas for mineral fertilizer producers to support them amid the risk of downtime “due to low demand in the domestic market and sanctions from unfriendly states.” Nitrogen fertilizers were allowed to export about 5.7 million tons. The export quota for complex fertilizers will be about 5.6 million tons.

On May 16, The Wall Street Journal reported, citing sources, that UN Secretary General António Guterres proposed to mitigate restrictions on the export of Russian and Belarusian potash fertilizers in exchange for the passage of ships with grain from the ports of Ukraine; according to the publication, he discussed this issue with Russia and Turkey. The UN World Food Program previously reported that about 25 million tons of grain “stuck” in Ukraine due to infrastructure problems and “blocked Black Sea ports.”

Putin has previously expressed confidence that Western countries will buy Russian fertilizers because of their scarcity. “The deficit will be taken. Will. No one wants to die of hunger, & mdash; said the head of state.

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Источник rbc.ru