MINSK, January 10. /TASS/. The Gomel Chemical Plant, a leading Belarusian petrochemical company and the largest mineral fertilizer producer in the country, refocused its exports to Russia and China due to Western sanctions, Plant Director Dmitry Chernyakov said an interview with the corporate newspaper of Belneftekhim holding.
"In early March [2022], we instantly lost 95% of exports accounted for 70% of total revenues and remained with the loss-making domestic market. The point is that the plant did not increase fertilizer prices inside the country for the five years, because we managed to cover losses on the domestic market by export earnings," the Director said.
The plant found the way out from the situation by refocusing exports to Russia, China and Libya. "We concentrated efforts on export refocusing from the closed adjacent market of Ukraine, and it amounts to approximately 360,000 - 430,000 metric tons annually," Chernyakov said. "The Gomel Chemical Plant had required registration documents as early as since mid-April. We made the stake on cooperation with the largest Russian distributor of mineral fertilizers," he noted.
Products of the chemical plant complement the mix of the Russian partner, Chernyakov said. "We sold more than 200,000 metric tons of NPK fertilizers over six months. Mind that requirements of Russian agricultural producers are above European ones," the Director noted. There is understanding that the competition will intensify and "it can be met on account of exclusivity of fertilizer brands and quality," he said. Deliveries of mineral fertilizers to Asia and South America make losses for the plant due to significant delivery costs, the Director said. "Nevertheless, we opened a new market - Libya; shipped products to China and other countries," he added.
The chemical plant has kept its presence in Europe and it had to remove the potash component covered by sanctions from NPK fertilizers," Chernyakov said. "To this end it was required to change a NPK fertilizer production line to nitrogen and phosphate products, he noted. "Difficulties with payments exist but the plant has preserved its presence on this market," he added.