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Comments by Russian Fertilizer Producers Association President Andrey Guryev on recent EU statements regarding global food security

28.07.2022 | News

We welcome the statements of the European Council emphasising that no restrictive measures should be imposed on Russian fertilizers or foodstuffs. It is significant that the EU has officially affirmed its commitment to avoiding any steps that might undermine global food security.

Our country plays a key role in providing the world with food. Russia is, by a wide margin, the second-largest producer of fertilizers in the world (after China) and has become a key exporter of fertilizers globally. Last year, 29% of all fertilizers imported by Europe were produced in Russia.

Sanctions imposed by a number of countries, including the EU, are having a serious negative impact on the supply of fertilizers to world markets.

This is reflected, in particular, in the refusal of transport companies to provide vessels for the transportation of cargo of Russian origin (even if the cargo itself and/or the cargo owners are not under sanctions), in the refusal to provide insurance for transportation from Russia, in restrictions on vessel calls at Russian ports, and in difficulties with financial clearing for transactions due to time-consuming banking compliance procedures.

These artificially created barriers are destroying established logistics schemes and supply chains used to deliver fertilizers to end consumers, and are therefore further escalating the food crisis.

In this regard, we hope that an EU directive/resolution/authorisation or other document will be issued in the near future that will guarantee banks, insurance companies, shipping companies, and suppliers of technologies and equipment for the mineral fertilizer industry in the EU and third countries that their relations with Russian fertilizer producers will not be looked at through the prism of sanctions legislation.

 

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