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EuroChem to mothball fertilizer plant in Lithuania — company

The decision "follows more than a year of widespread supply-chain disruptions and shortages of raw materials since the company was sanctioned by the Lithuanian Government and placed under temporary administration," EuroChem noted

MOSCOW, July 3. /TASS/. EuroChem Group AG will initiate the process of mothballing its Lithuania-based Lifosa phosphate fertilizer plant because of the impact of sanctions, the fertilizer producer said on Monday.

"After careful deliberation, and with deep regret, EuroChem intends to start the process of mothballing the plant in Lithuania from October 2023," CEO of EuroChem Group AG Samir Brikho said.

"While the EU have stated that EuroChem is not sanctioned, we continue to experience the knock on effects of sanctions which have seriously impacted our European operations," the chief executive said.

"Under normal circumstances Lifosa is a financially healthy business running at full capacity, producing a wide variety of high-demand products for our customers around the world. However, the placing of Lifosa under sanctions and cutting off its sales and supply chain has created an impossible situation marked by critical raw material shortages, production stoppages, and lack of access to markets and finance," he noted.

"Over the last 15 months, we have engaged in dialogue with the Lithuanian authorities to find a mutually satisfactory agreement that enables our business in Lifosa to continue operating efficiently, and within full compliance of EU sanctions. However, it is unsustainable for us to continue to run the business in this restrictive environment," Brikho stressed.

The decision "follows more than a year of widespread supply-chain disruptions and shortages of raw materials since the company was sanctioned by the Lithuanian Government and placed under temporary administration," EuroChem noted.

"The sanctions have caused Lifosa many millions of euro in lost revenues to date and a significant negative financial result for the first half of the year 2023, losses the company say are no longer sustainable," the fertilizer producer concluded.

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