The European Union appears to be favoring Russian interests over Poland’s as Russian fertilizers flood the European market. According to forsal.pl, Russia has solidified its position as the dominant fertilizer supplier to the EU, with almost 3 million tons imported in the first half of 2024 alone, marking a 65% increase from the previous year. Russia and Belarus collectively accounted for over 30% of EU fertilizer imports, the highest since Russia’s full-scale invasion of Ukraine.
Impact on Polish Producers
This influx of Russian fertilizers negatively impacts Polish producers, who struggle to compete with the lower-priced imports. Despite assurances from Brussels that the situation is being monitored, there has been no indication of any forthcoming intervention. The increased Russian exports are a strategic move to compensate for the loss of natural gas markets in Europe, with fertilizer production serving as a significant outlet for their surplus gas.
Official statistics reveal that Russia boosted its mineral fertilizer production by 10% in 2023 compared to 2022, with potential for another 10% increase this year. This surge in production and exportation is crucial for rebuilding revenue in Russia’s gas sector, which has suffered substantial losses. Midway through last year, Gazprom’s gas imports to the EU were about 70% below the long-term average, as reported by the Brussels-based Bruegel Institute.
EU’s Energy Transactions with Russia
The EU’s energy transactions with Russia, monitored by Finland’s Centre for Research on Energy and Clean Air (CREA), have exceeded 9 billion euros since the start of this year, driven by increased liquefied gas deliveries to Belgian and French ports. This is a significant rise from the over 5 billion euros recorded by CREA the previous year, underscoring the ongoing energy ties between the EU and Russia despite geopolitical tensions.