CRU: Worsening in Russia-Ukraine Relations Could Hit Nitrogen Market

CRU: Worsening in Russia-Ukraine Relations Could Hit Nitrogen Market

PR Newswire

LONDON, Dec 7, 2018

LONDON, Dec 7, 2018 /PRNewswire/ --

A naval clash between Ukraine and Russia November 25 has further strained relations between the countries, with fears that trade could be affected should it become a full-blown crisis.

Worsening in Russia-Ukraine relations could hit nitrogen market


CRU Logo

Ukraine says Russia is deliberately blockading Mariupol and another Ukrainian port on the Sea of Azov, Berdyansk after Russian border guards fired on three Ukrainian ships and seized their crews off the Crimean Peninsula.

Russia and Ukraine share access to the Sea of Azov under a 2003 treaty.

German Chancellor Angela Merkel has suggested "sensible dialogue" will solve the crisis but an escalation in tensions between the two nations could have wide-reaching effects, including on fertilizer trade.

Nitrogen fertilizers impact

Neighbourly disputes over nitrogen fertilizer exports have been around for a decade already with the imposition of duties on Russian ammonium nitrate (AN) by Ukraine on May 21 2008.

Ukrainian anti-dumping duties on Russian nitrogen fertilizers, excluding ammonia, prevail and are set at 31.84% through 2018.

Russia in turn has placed Ukrainian nitrogen facilities belonging to Dimitry Firtash, Ihor Kolomoisky and state-run Sumykhimprom on its sanctions list from early November 2018.

The impact of the Russian sanctions announcement is still unclear, but most believe ammonia trade between Russia and Ukraine will continue in the short term. This is because sanctions do not prevent payment from Ukraine to Russia for ammonia received but will instead block Russian bank accounts and funds owned by Firtash and Kolomoisky.

Read the full story:

Read more about CRU:

About CRU

CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.

CRU employs over 260 experts and has more than 10 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004.

When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.

CRU – big enough to deliver a high-quality service, small enough to care about all of our customers.

Voltar noticias em Inglês