The European Union is “sleep strolling” into turning into depending on Russian fertilizers, simply because it did with pure gasoline, a number one producer has advised the Monetary Occasions.
Nitrogen fertilizers, broadly used for plant progress, are made with pure gasoline, and the bloc is importing an increasing number of of the crop vitamins from the sanctioned nation, the outlet mentioned, citing Svein Tore Holsether, CEO of Norwegian chemical producer Yara Worldwide.
“Fertiliser is the brand new gasoline,” Holsether mentioned. “It’s a paradox that the purpose is to scale back Europe’s dependency on Russia, after which now we’re sleepwalking into handing over important meals and fertilising energy to Russia,” he added.
Russia is among the world’s largest producers and exporters of nitrogen-containing fertilizers. EU imports of urea, a standard nitrogen-based crop nutrient, doubled from Russia within the 12 months to June 2023 in contrast with a 12 months earlier, FT mentioned citing knowledge from Eurostat.
Because the begin of this 12 months, Russian imports have declined however nonetheless account for a couple of third of complete urea imports into the bloc. In response to the European Fee, the EU imported 24% of its complete nitrogen fertilizer provide from Russia, with Egypt because the second-largest provider at 22%.
Nitrogen-based crop vitamins are produced by mixing nitrogen from the air with hydrogen from pure gasoline at excessive temperature and stress. A spike in pure gasoline costs in 2022 following Western sanctions towards Russia over the Ukraine battle additionally drove fertilizer costs up, hitting European farmers financially. Moscow in the meantime noticed its export income surge 70% in 2022.
Fertilizer costs have eased since then together with pure gasoline costs, however Europe’s fertilizer trade continues to be struggling as Russian imports take a much bigger share of the market, Holsether mentioned.
Western international locations haven’t imposed any sanctions on Russia’s meals and fertilizer exports for the reason that begin of its navy operation in Ukraine in February 2022. Moscow complained nonetheless, that exports are hampered by sanctions as they make it more durable for merchants to course of funds or receive vessels and insurance coverage.
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