Russia solidifies its role as a dominant fertilizer supplier, impacting EU markets and Polish producers.
According to forsal.pl, Moscow is solidifying its role as the leading fertilizer supplier. Despite assurances from Brussels that the situation is being monitored, there is no talk of market intervention. The influx of Russian fertilizers adversely affects Polish producers. Eurostat data reveals that nearly 3 million tons of fertilizers from Russia and Belarus entered the EU in the first half of 2024, a 65% increase compared to the same period last year. These two countries accounted for over 30% of EU imports, the highest share since Russia’s full-scale invasion of Ukraine.
Impact on Gas Revenues and EU Imports
The increased production of fertilizers in Russia, up 10% from 2022, and another potential 10% increase this year, is a strategy to utilize surplus natural gas. This sector is crucial for the Kremlin’s budget recovery efforts. Last year, Gazprom’s gas imports to the EU were about 70% below the long-term average, according to Bruegel. However, CREA reports that since the beginning of this year, gas transactions between the EU and Russia have surpassed 9 billion euros, driven by increased LNG deliveries, particularly to Belgian and French ports.