Russian gov't boosts nitrogen fertilizer export quotas by 750,000 tonnes
MOSCOW. Nov 28 (Interfax) - The Russian government has increased export quotas for nitrogen fertilizers by 750,000 tonnes through the end of 2022, according to a decree signed by Prime Minister Mikhail Mishustin.
Last week the decision to increase the quotas was taken by the subcommittee on customs tariff and non-tariff regulation and protective measures in foreign trade of the government's Commission on Economic Development and Integration. In particular, the quota for urea exports will be increased by 400,000 tonnes, for ammonium nitrate - by 200,000 tonnes, and for urea-ammonium nitrate mixture (UAN) - by 150,000 tonnes.
The total volume of quotas for H2 2022 is now just over 9 million tons. The restrictions do not apply to supplies to Abkhazia and South Ossetia.
"Boosting quotas will allow us to preserve production volumes of nitrogen fertilizers and prevent overstocking of warehouses," Deputy Industry and Trade Minister Mikhail Ivanov said regarding the decision.
According to the ministry's preliminary estimates, Russia's export of fertilizers this year could decrease by about 10% in volume terms. At the same time, "despite the external restrictions experienced by Russian companies - the disconnection of banks from the SWIFT system, problems with cargo vessels, frozen bank accounts - the current market conditions allow us to maintain the level of exports in value terms," the ministry told Interfax. The Ministry does not expect any deficit in quotas.
The Russian government introduced quotas on the export of nitrogen and complex fertilizers from December 1, 2021, as one of the measures to curb the growth of food prices. This measure currently remains in effect through December 31, 2022.
There are plans to extend quotas in the amount of 7 million tonnes for nitrogen fertilizers and 4.9 million tonnes for complex fertilizers for the period from January 1 to May 31, 2023. The corresponding government draft decree has been prepared by the Industry and Trade Ministry.