Ukrainian sunflower oil producer Kernel starts buying nitrogen fertilizers in Poland

MOSCOW. Jan 18 (Interfax) - Kernel, Ukraine's largest producer and exporter of sunflower oil, has started buying nitrogen fertilizers directly from the PKN Orlen group's Polish manufacturer Anwil S.A. in early preparations for the upcoming agricultural season, Ukrainian media reported, citing a Kernel post on social media.

The fertilizers were transported by road and transshipped into rail cars at the border of Poland and Ukraine, from where it was delivered by rail to Kernel warehouses.

"We are purposefully expanding our network of partners, diversifying risks and testing a new quality of products for agribusiness. I am sure that this is only the first step towards a future partnership," said Igor Stelmashchuk, head of its Agribusiness commercial division.

Ostchem, Ukraine's largest fertilizer producer which is part of Dmitry Firtash's Group DF holding, reduced production 66.9% in 2022 to 1.754 million tonnes. The reasons for the decline included disrupted supply and distribution chains, a decrease in export volumes due to regulatory and logistics restrictions, power outages, high gas prices, as well as a fall of at least 40% in effective demand from farmers.

Group DF estimates the Ukrainian fertilizer market decreased by 40-60% from 4.75 million tonnes in 2021 to 2-2.9 million tonnes in 2022.