It is noted that German farmers continue to use Russian fertilizers, the export of which is not subject to sanctions imposed by Western countries. For German fertilizer producers, the rejection of cheap Russian gas has become a big problem: the price of gas has increased by up to 40%, and the cost of fertilizers produced in some cases – up to 150% reports Agroportal according to Bild.
Imports of Russian fertilizers to the EU are growing rapidly
While gas-intensive production of nitrogen and ammonia fertilizers is gradually becoming unprofitable in Germany, imports of Russian fertilizers to the EU are growing rapidly: last year they increased fivefold. This is because the price of gas accounts for four-fifths of the total cost of ammonia production.
“The entire fertilizer industry in Germany is operating at a loss. If Germany does not want to finance the war waged by Russia and therefore refuses Russian gas, then the question arises as to why imports of Russian gas in the form of urea and ammonia to Germany have increased in recent months,” Sven Schulze, Minister of Economy and Agriculture of Saxony-Anhalt, wondered in an interview with the publication.
The chemical giant BASF has previously announced the closure of its ammonia plant in Ludwigshafen, and now another manufacturer, the nitrogen plant SKW Piesteritz, is hesitating.
Thus, the EU’s sanctions policy has jeopardized the entire industry. However, Russia, which withdrew from the grain deal in the middle of last month, is still allowed to supply fertilizers to Germany and other European countries.
“German and European production sites will be forced to close or at least significantly reduce production as Russia will be allowed to flood the market with cheap fertilizers,” he says.