Prospects for the Development of the Mineral Fertilizer Market in the EAEU Discussed

Georgy Arzumanyan, Director of the Department of Industrial Policy at the Eurasian Economic Commission, spoke about the state and future prospects of the mineral fertilizer market in the Eurasian Economic Union (EAEU), as well as the potential of a new financing mechanism for industrial cooperation. These topics were addressed during the XVI International Conference "Mineral Fertilizers-2024" in Moscow. 

According to Arzumanyan, since 2019, the total production of mineral fertilizers in the EAEU has increased by 16% when converted to 100% nutrient content. However, the industry currently faces challenging times due to the necessity of finding new markets, increased delivery times and costs, and more complex logistics. "The financing mechanism for industrial cooperation within the EAEU could become a powerful tool for launching projects in areas lacking fertilizer production, where local consumption is highly sensitive to price volatility," Arzumanyan noted.

 Participants from Russia presented reports on the redistribution of power in the global market, price dynamics within the sector, and potential alternative methods of settlement and insurance for fertilizer transactions. They also discussed trends in transportation methods used by manufacturers and the development of the necessary infrastructure for delivering products to consumers. Representatives from major Eurasian fertilizer-importing countries such as India, Brazil, and China also attended the event. 

An important business meeting took place between Georgy Arzumanyan and Mauricio Da Costa Carvalho Bernardes, Minister Plenipotentiary, Counselor, and Deputy Head of the Diplomatic Mission of the Federative Republic of Brazil in the Russian Federation. They discussed ongoing efforts to facilitate dialogue among the heads of industrial departments within the EAEU and BRICS. 

Arzumanyan reiterated that the EAEU's industrial cooperation financing mechanism is poised to be a significant driver for new fertilizer production initiatives in areas currently lacking such capacity, where price volatility impacts internal consumption considerably.