Fosagro threatens to stop half of facilities in Balakovo

The largest Russian consumer of liquid sulfur Fosagro has again complained of its supplier Gazprom Sera. Chemists says that because of the shortage of sulfur half of the facilities at Balakovo Apatit can stop, Gazprom Sera responds that it fulfills the contract, but can’t increase the supply. The key problem is the lack of a park of special wagons for liquid sulfur: each of the disputing parties is confident that not it should spend money to update the park, but the counterparty. According to analysts, the stop of the facilities in Balakovo doesn’t concern farmers for a while, but can result in the loss of $20 million of the revenue per month for Fosagro.

In December, Fosagro may reduce the production of fertilizers in its Balakovo branch Apatite (Saratov region) two times. The production has already been reduced by 30% because of the short supply of liquid sulfur from Gazprom Sera. "It jeopardizes the fulfillment of obligations to farmers on supply of 72 thousand tons of phosphate fertilizers in December during the procurement campaign before the spring field works," – Fosagro says. The company warned of the decline in the revenue and estimated the decrease in contributions to budgets in December at more than 100 million rubles.

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