FT: The UN is negotiating with Ukraine and Russia to unblock supplies of Russian fertilizers

The United Nations is negotiating with Russia and Ukraine regarding the supply of fertilizers, including ammonia.

The Financial Times writes about it.

The war led to a significant increase in fertilizer prices. According to the publication, the representatives of the UN are conducting negotiations on the restoration of the pipeline for transporting ammonia from Russia to the Black Sea coast of Ukraine.

The proposal is said to be part of a deal promised to Putin in exchange for unblocking Ukrainian ports for grain exports. This will allow Russian ammonia to use the same sea corridor that currently transports grain.

If successful, such an agreement will allow for the annual supply of 2 million tons of ammonia worth about $2.4 billion at current prices from Russia. Negotiators hope it will help ease the global food crisis and strengthen the current agreement on grain exports.

Ammonia is a key component in the manufacture of fertilizers. According to the research company ICIS, before the invasion of Ukraine, Russiaʼs share in the supply of ammonia by sea was 20%. Fertilizer prices have more than doubled, partly because supplies through the Samara-Odesa pipeline were halted in February. The pipeline transported nearly 2.3 million tons of Russian ammonia a year, according to data provider Argus Media.