Moscow – PhosAgro (MICEX, RTS, LSE: PHOR) (“the Company”), a leading global vertically integrated phosphate-based fertilizer producer, announces that in consideration of the recent substantial rupee devaluation that has caused a dramatic increase in fertilizer prices for India’s domestic market, the Company has agreed to provide IPL/IFFCO a discount on current contract phosphate fertilizer prices. As part of this agreement, IPL/IFFCO has committed to purchase additional volumes of phosphate fertilizers from PhosAgro and has granted the Company a seller’s option on these volumes. Should PhosAgro choose to exercise its seller’s (Put) option, it will have no further volumes of phosphate fertilizers to sell to the market until April 2012.
PhosAgro CEO Maxim Volkov said: “Given our long-term relationship with IPL/IFFCO, I believe we have found an acceptable solution for all parties.”