EXPLAINER: How UN plan for Russian ammonia export could help global fertilizer market

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The United Nations proposes that ammonia gas owned by Russian fertilizer producer Uralchem be pumped by pipeline to the Ukrainian border, where it would be bought by US-based commodities trader Trammo.

has triggered a global shortage of nitrogen fertilizer. The Russian fertilizer industry estimates that up to 70% of European ammonia plants have suspended or reduced production.

Uralchem is considering building an export terminal for ammonia in Russia’s Black Sea port of Taman, but this would take more than a year. The Russian ammonia used to go mainly to fertilizer producers in Morocco, Turkey, Southeast Asia, and Africa, whose output the United Nations is keen to restore to help ease the global food crisis.that Russia had blockaded. However, the pipeline was not publicly mentioned until this week.

 

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