Although the company condemned the invasion of Ukraine, Yara needed phosphate, potassium and nitrogen to make a complete fertilizer. Therefore it will not cut off contact with Phosagro and Uralkali companies.
The former is controlled by oligarch Andrei Gurev, while Uralkali is partly owned by Dmitry Mazepin, with whom Vladimir Putin has close ties.
Now the company is likely to lose its Russian supplier after Russian authorities asked fertilizer producers to stop shipments, writes Today’s business.
– The situation is rapidly evolving and confusing, and it is too soon for us to comment on this latest message, communications director Kristin Nordal at Yara told the newspaper this weekend.
– It is important that we as a society make ourselves less dependent on Russian shipments, and that we continue to work actively on the search for alternative sources of raw materials to limit dependence on Russian nutrition and to ensure the production of fertilizers that are essential to preventing food shortages and hunger, he added. .
Yara is one of the largest fertilizer producers in the world. Analysts believe that it will not be easy to replace Russian raw materials with imports from elsewhere, and that it could take years. This will lead to higher costs for farmers around the world and lower production, which in turn makes food more expensive, reports Bloomberg.
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