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29 Jan, 18:30

Fertilizer prices may grow in Europe due to duties on Russian products

Russian producers can redirect volumes in case of scaling down supplies to Europe to developing countries of South Asia, Africa, and Latin America, experts believe

MOSCOW, January 29. /TASS/. Fertilizer prices in Europe may grow because of duties introduced on Russian products, experts questioned by TASS say.

The European Commission has recently approved the proposal on duties on certain agricultural products from Russia and Belarus and on some nitrogen fertilizers.

"Prices will most probably grow. The issue is with the growth rate and the level where they will stabilize. Reallocation of supplies will probably take place over time because fertilizers are loose goods to a greater portion and have no specific restrictions when transported," Evgenia Popova from Implementa said.

"The rise in fertilizer prices in Europe is not ruled out in connection with the change of duties but the amount of such increase may differ from country to country," Dmitry Baranov from Finam Management noted. The introduction on duties may result in contraction of revenues of Russian fertilizer producers from supplies to Europe but will not influence volumes of supplies, he added. "There is no direct ban on fertilizer supplies from Russia to Europe, meaning that deliveries of fertilizers to European countries, will continue," the expert said.

Russian producers can redirect volumes in case of scaling down supplies to Europe to developing countries of South Asia, Africa, and Latin America, experts believe.