UN trying to get Russian ammonia to world through Ukraine

WEDNESDAY, SEPTEMBER 14, 2022

The United Nations is trying to broker a resumption of Russian ammonia exports through Ukraine, a Western diplomat said on Tuesday, a move that could stabilize a landmark deal allowing Ukrainian food and fertilizer shipments from Black Sea ports.

Ammonia is a key ingredient in nitrate fertilizer. A pipeline transporting ammonia from Russia's Volga region to Ukraine's Black Sea port of Odessa was shut down when Russia invaded Ukraine on Feb. 24.

Facilitating Russia's food and fertilizer exports is a central aspect of a package deal brokered by the United Nations and Turkey on July 22 that also restarted Ukraine's Black Sea grain and fertilizer shipments. Russia has recently criticized the deal, complaining that its exports were still hindered.

The United Nations has proposed that ammonia gas owned by Russian fertilizer producer Uralchem be brought via pipeline to the Russia-Ukraine border. There it would be purchased by US-headquartered commodities trader Trammo, according to the proposal.

Trammo and Uralchem did not immediately respond to a request for comment.

The pipeline is designed to pump up to 2.5 million tonnes of ammonia per year.

"The UN is pursuing all efforts to allow for a positive outcome on Russian ammonia exports to international markets," said senior UN trade official Rebeca Grynspan, who leads the facilitation of Russian food and fertilizer exports.

She declined to comment on the specifics of the deal and said it was "too early to say" how close an agreement was. Grynspan said food and fertilizer were being exported from Russian ports.

Ukraine and Russia are both major global grain and fertilizer exporters. The United Nations said the agreement on Russian and Ukrainian exports is needed to tackle a global food crisis that it said had been worsened by Russia's war in Ukraine.

An ammonia deal would give Russia more of a reason to stick to the Ukrainian Black Sea export deal. Russia and Ukraine declined immediate comment on the discussions.

Reuters