Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, announces that the Company has been forced to suspend part of its mineral fertiliser production at the Balakovo branch of OJSC Apatit due to Gazprom Sulphur's failure to fulfil its contractual obligations.
The Balakovo plant, which mainly supplies to the Russian market, has been forced to initiate a gradual suspension of sulphuric acid production. The lack of sulphur may cause a decrease in December production volumes of phosphate-based fertilisers (in MAP equivalent) by 72,000 tonnes.
PhosAgro has informed the Government of the Russian Federation, including the Ministry of Agriculture and Ministry of Industry and Trade, as well as regional authorities, about this situation.
PhosAgro hopes for timely actions by regulating and supervising state authorities aimed at resolving the situation.