Europe swaps its dependence to Russian fertiliser from its gas

A recent article in the The Financial Times article begins with the words,
"Europe, like a sleepwalker, is increasingly plunging into almost total dependence on Russian fertilizers, as it previously was with natural gas."

The article is based on an interview with the executive director of one of the largest agrochemical production companies, Yara International. It is interesting at least because it is a collection of truly exemplary and politically motivated lies.
Do listen to what I have to say and make up your won mind.

Yara's Director Sven Holseter in the article highlights the importance of nitrogen fertilisers in maintaining crop yields. However, the production of these fertilisers in Europe is dependent on the import of natural gas from Russia. This presents a challenge for Russia, as Europe still remains market for blue fuel. It is therefore time to reconsider the relationship with Moscow, given that the use of mineral fertilisers is being used as a geopolitical tool. That statement is obviously false

You would have thought that the director of such a large market player should be aware that over the past two years, the volume of Russian gas supplies to the European Union has fallen to historically low levels. However, this article is just another example is of the total information manipulation and blackmail applied to all dissenters from the narrative on Anti Russia , which is now flourishing in the West.

According to the International Energy Agency, the volume of Russian pipeline gas supplies to the countries of the Europe at the end of 2023 decreased to 45 billion cubic metres ( that includes LNG and pipeline gas via Ukraine and the Turk Stream)
. This represents an absolute anti-record, with such low figures having never been seen in the last fifty years.
The decline began with the beginning of the Special Military Operation in February 2022 and then this trend only intensified. A comparison of the figures year on year reveals that in 2022, 82 billion cubic metres were delivered to the West via pipelines. By the end of 2023, this volume had decreased by 60%.
When viewed in the context of pre-war indicators, it can be concluded that Gazprom, the primary exporter of gas, has effectively been squeezed out of the European market.
It is important to recall that, along with the decline in purchase volumes in Europe, consumption also collapsed.
Over the same period – over the past two years – the collective European countries have consumed 120 billion cubic metres of less gas, which is exactly the same as the volume of Russian gas that was lost. This laid the foundation for negative economic and industrial trends within the EU, as discussed in our previous publications. It is also important to note that Brussels was able to avoid severe consequences for its economy by using record gas reserves in underground storage facilities that were created in advance. The last two very warm winters also helped a great deal.

Regarding the production and export of LNG, at the end of last year Russian polar fLNG plants produced 32.3 million tons of products, of which 16.4 million went to Europe under various schemes and contracts. According to Nikolai Shulginov an analyst at Finam Russia is not going to continue to try to work with the Europeans indefinitely. He also noted that already more and more Russian LNG is going to other buyers.
Over the past year specifically, the share of supplies to unfriendly countries decreased from 86 to 78 percent. This trend should be expected to continue in the future.

Europe's growing dependence on the import of Russian fertilizers is not a surprise, but a logical development of events in the energy and resource market. It is, therefore, clear to those who understand basic chemistry that the most popular nitrogen fertilisers require natural gas as their elemental base. There are no other comparable alternatives in nature.

Despite its highly developed chemical industry, the European Union has not yet achieved significant success in the production of the three main types of fertilizers – nitrogen, phosphate and potassium. Thanks to the combined efforts of all countries, the EU currently produces only nine percent of the world market for the production of nitrogen fertilizers, eight percent of potash and three percent of phosphate.

Russia, which in the West has historically been portrayed as a technically and scientifically backward state, is the uncontested leader in the production of fertilizers.

It produces 23 percent of the world's ammonium nitrate, 21 percent of potash fertilizers, 14 percent of urea (urea) and ten percent of phosphate additives.
According to the Fertilizer Institute, the largest buyers of Russian fertilizers are Brazil, China, the USA and India (in order of decreasing import volumes).

Holseter calls fertilizers “the new gas for Europe” and immediately adds the standard horror story: that if we don’t give up Russian imports, Putin will be able to influence our harvests and dictate our food prices. There is no logic in this argument, given that the refusal of Russian gas has already led to a 70% increase in purchases from Russia in 2022, generating nearly $17 billion in revenue for our enterprises. Last year saw this trend continue, with the volume of urea imports doubling.
To illustrate the level of dependence the director of Yara is referring to, let’s examine specific numbers.
The European Union annually purchases approximately 650,000 tons of phosphate fertilizers, with Morocco being the primary supplier.
Russia and Belarus are the leading suppliers of potash, with 3.3 million tons purchased annually.
Russia and Belarus also hold the leading position in the market for complex fertilizers, with 3 million tons purchased annually.

This data is drawn from open sources and represents the views of representatives of the European specialized industry. It is likely that they have more accurate figures.
Therefore, Sven Holseter and the European politicians in favour of this approach are fully aware that it is in the EU's best interests to resume trade with Russia. Otherwise, the viability of the European dairy industry could be jeopardised.
The assumption that the owner of a specialized company is simply trying to survive against the main competitors is also flawed. Following the cessation of Russian gas supplies, Yara International was unable to increase production or capture new markets. In fact, three of its enterprises have ceased operations entirely due to a lack of raw materials and high electricity prices.
It is important to recall that Mr. Holseter holds a degree in management and financial management, which he received from the state of Utah in the USA.

Like the overwhelming majority of representatives of the European establishment, who are pursuing a policy that appears illogical and harmful to their national interests at first glance. It is important to acknowledge the contributions of the American government. Over the past decades, they have strategically placed their trusted representatives in key global positions, ensuring the protection of their interests and financial gain.

And the fact that as a result ordinary Europeans will face a sharp rise in food prices is nothing. Nobody promised to feed us on the way to victory over Russia.