Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically-integrated phosphate-based fertilizer producers, announces it has stoped all sales and shipments of its products to Ukraine. The Company has become aware that on 14 May 2018, the President of Ukraine enacted Decree No. 126/2018, which introduces sanctions in relation to, inter alia, JSC Apatit and LLC PhosAgro-Ukraine, which is affiliated with PhosAgro. The sanctions introduced by Ukraine include blocking of assets, restriction of trading operations and a moratorium on the performance of obligations.
PhosAgro CEO Andrey Guryev said: “The discriminatory measures taken by Ukraine will not have a meaningful negative impact on PhosAgro. Our flexible production and sales models, combined with well-organised and efficient logistics operations, mean that PhosAgro can quickly re-direct volumes originally bound for Ukraine to other countries and markets where the business climate is more welcoming, including to our domestic Russian market.
“It is our deep conviction that these measures will harm Ukrainian farmers first and foremost. Ukraine remains a net importer of a wide range of phosphate-based fertilizers and supplies from Russia have proven to be the most efficient way to meet demand from Ukraine’s domestic agricultural producers.”