Russia stops ammonium nitrate exports for one month amid global supply crunch

MOSCOW, March 24 (Reuters) - Russia, which controls up to 40% of the global trade in ammonium nitrate, said on Tuesday it will stop exports of the fertilizer for one month until April 21 to ensure sufficient supply during the spring planting season.

Russia, a major fertiliser exporter, lacks the capacity to boost production this year amid a global supply crunch caused by the closure of the Strait of Hormuz, through which 24% of global trade in ammonia, an ingredient of ammonium nitrate, passes.

The Agriculture Ministry said it had stopped all issued licenses for ammonium nitrate exports and will not issue new ones, with the exception of those pertaining to government contracts. Russia produces a quarter of the world's ammonium nitrate.

"In the context of growing export demand for nitrogen fertilizers, the suspension of their supply abroad will allow the needs of the domestic market to be prioritized during the spring fieldwork season," the ministry said.

AMMONIUM NITRATE USED AT START OF PLANTING SEASON

Ammonium nitrate is extensively used in agriculture at the start of the planting season. Russia has had export caps in place since 2021, while producers have been asked by the government to prioritize supplies to the domestic market over exports.

Russia exports ammonium nitrate to Brazil, India, Peru, Mongolia, Morocco, and Mozambique. It also exported a small quantity of ammonium nitrate to the U.S. in 2024.

Eurochem, Acron AKRN.MM and Uralchem are Russia's leading producers of ammonium nitrate.

Ukrainian drones in February hit the Dorogobuzh plant in Western Russia, Acron's leading production asset, which makes about 11% of Russia's ammonium nitrate. The plant is not expected to be fully operational before May.

Ammonium nitrate is also used in the production of explosives.