New Delhi, India – PhosAgro, a Russian vertically integrated company and one of the world’s leading producers of phosphate-based fertilizers, announces the signing today in New Dehli of an agreement with the Russian Direct Investment Fund (RDIF) and Indian Potash Limited (IPL), India’s largest importer of mineral fertilizers, that covers cooperation in the sphere of mineral fertilizers.
The signed agreements were exchanged today in the presence of Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.
As part of a framework for mutually beneficial cooperation, IPL intends to purchase for the Indian market up to 2 million tonnes of high-quality mineral fertilizers produced by PhosAgro—DAP and NPK with various nutrient content—in 2019-2021. The total value of deliveries is estimated at USD 1 billion.
Under the agreement, RDIF, PhosAgro and IPL also plan to consider the possibility of jointly implementing promising investment projects in the mineral fertilizer sector, including associated infrastructure and the introduction of advanced technologies that will contribute to the economic prosperity of the Russian Federation and the Republic of India.
In addition, the parties expressed their intention to develop cooperation in a number of areas, including the exchange of advanced know-how and the sharing of best practices related to the agri-environmental use of fertilizers; support for, and the development of, the practice of using more efficient fertilizers; and participation in scientific and practical events related to best available technologies in the mineral fertilizer industry.
PhosAgro CEO Andrey Guryev noted that “this cooperation agreement is a significant contribution to the development of Russian non-resource-based high-tech exports and an additional incentive for further investment in the domestic mineral fertilizer industry, which will strengthen food security in Russia and India and increase trade between our countries. Moreover, it will increase the volume and expand the range of phosphorus-based fertilizers supplied to India, which are known for their high quality and for having low levels of potentially-harmful impurities, and which are in demand in 100 countries around the world.”
According to Kirill Dmitriev, CEO of RDIF, “our partnership with India’s leading company in the fertilizer sector will further strengthen the position of our portfolio company, PhosAgro, in international markets, and it will also make an important contribution to the further development of bilateral cooperation between Russia and India in the area of trade and commerce.”
The Managing Director of Indian Potash Limited, Parvinder Singh Gahlaut, stressed that “this signed agreement is an important step in the development of cooperation between our companies and countries in the mineral fertilizer sector. PhosAgro’s products have always stood out because of their high quality and efficiency, which is especially important for us because this will create significant opportunities for our farmers to increase yields and strengthen the country’s food security.”