Moscow – PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, is considering increasing sales of fertilizers to Argentina following the decision taken by Argentinian President Mauricio Macri to cancel the 6% import duty on high-quality diammonium phosphate (DAP) from Russia.
Andrey Guryev, CEO of PhosAgro, President of the Russian Association of Fertilizer Producers and Chairman of the Russian-Argentine Council of Entrepreneurs from the Russian side, commented:
“The joint efforts of federal authorities, including the Ministry of Foreign Affairs and the Ministry of Economic Development, as well as the intergovernmental Russian-Argentine commission for cooperation in trade, science and technology, the Russian Union of Industrialists and Entrepreneurs and the Chamber of Commerce and Industry have successfully upheld the interests of Russian business on the international arena by lifting restrictive measures on the trade of high-quality Russian mineral fertilizer products. We are grateful to the Argentine authorities for the constructive dialogue and willingness to bolster mutually beneficial cooperation between Russian and Argentine companies.
“To be sure, Russian fertilizer producers are not the only winners from such a decision; Argentine farmers and their customers will also benefit from additional volumes of 300-350 kt of high-quality DAP products that are free from potentially harmful contaminants.
“Agricultural products and mineral fertilizers, which are necessary for increasing the efficiency of agricultural production, together constitute one of the most important and largest areas of trade between Russia and Argentina. The Russian fertilizer industry views Argentina and the rest of Latin America as a high-priority market, alongside the Russian domestic market. In 2016, Russian fertilizer exports to Argentina grew by 1.6 times year-on-year to 521 kt, making up 43% of Russia’s overall exports to Argentina.
“The illogical situation in which high-quality Russian DAP, which is free from potentially harmful contaminants, was subject to import duties, while fertilizer containing harmful substances were allowed without being subject to duties, has now been resolved.”