Russian Ministry Recommends Suspending Fertilizer Exports

Russia could suspend exports of fertilizers, state news agency TASS reported, a move that would remove a large portion of global supply from the market.

The Ministry of Industry and Trade recommended suspending the export of fertilizers until normal transportation services in and out of Russia are resumed, TASS reported Friday. The ministry couldn’t immediately be reached for comment.

Such a move would likely stoke prices, potentially hurting farmers worldwide.

Fertilizers such as potash and nitrogen are largely moved through trains and ships. Those movements have been hit since Russia’s invasion of Ukraine as foreign shippers have steered clear of the region. For instance, several large shipping companies, including the world’s biggest container ship operators—A.P. Moller-Maersk A/S and Mediterranean Shipping Co.—have temporarily suspended services to Russian ports.

For fertilizers, “a situation is emerging where, due to sabotage of deliveries by a number of foreign logistics companies, farmers in Europe and other countries cannot receive the contracted volumes of fertilizers,” TASS reported.

Russia was responsible for 18% of the potash market in 2017, according to the U.S. Geological Survey. Among other fertilizers, it also accounted for 20% of ammonia exports and 15% of Urea, according to Scotiabank.

The price of fertilizers has already soared over the past year. For instance, the price for anhydrous ammonia, a key fertilizer used for corn, hit a record high last month of $1,492 per ton.

Further price rises would add to inflationary pressures on farmers, who are already paying significantly higher prices for their fuel, weed-killing chemicals, crop seeds and seasonal labor.

–Kirk Maltais contributed to this article.