Russia extended its fertilizer export quota until December

Russia has extended fertilizer export quotas until December as a global shortage deepens due to the Iran war and disruptions in the Strait of Hormuz, Bloomberg reported.

Russian producers are allowed to export 20 million tons of fertilizer between June 1 and November 30, the government said in a statement released on Wednesday.

The de facto closure of the strait has cut off about a third of the world’s seaborne fertilizer trade, raising fears of a food crisis. Countries are scrambling to find alternative sources of supply for farmers, but leading producers including China and Russia have restricted exports, forcing buyers to pay premiums for limited volumes.

Russia, the world’s second-largest fertilizer producer, supplies about 20 percent of global trade. It already prioritizes its domestic market under its current export quota of 18.7 million tons, which runs until the end of May. Russian farmers are also benefiting from lower prices.

The new restrictions include the export of 8.7 million tons of nitrogen fertilizers, more than 4.2 million tons of ammonium nitrate and about 7 million tons of complex fertilizers, the government said.

The quotas do not apply to fertilizer supplies to Abkhazia and South Ossetia, as well as to transit shipments and deliveries as part of humanitarian aid abroad.

Tags: restrictions, Russia, export, fertilizers