Finance
Russian Billionaire Says Ukrainian Drone Attacks Affect Nitrogen Fertiliser Trade
Published by Global Banking & Finance Review®
Posted on April 17, 2026
3 min readLast updated: April 17, 2026
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Russian billionaire Andrei Melnichenko warns Ukrainian drone strikes, particularly the February 25 strike on Acron’s Dorogobuzh plant, have knocked out around 10–11% of Russia’s ammonium nitrate output. Combined with export limits and disruptions via the Strait of Hormuz—responsible for roughly a th
Ukrainian Drone Strikes Disrupt Russian Nitrogen Fertiliser Trade and Prices
Impact of Ukrainian Drone Attacks on Russian Fertiliser Industry
By Olesya Astakhova
MOSCOW, April 17 - Ukrainian drone attacks in recent months are having a significant impact on the Russian nitrogen fertiliser industry, billionaire Andrei Melnichenko, founder of fertiliser producer EuroChem, told reporters on Friday.
Global Fertiliser Trade and Food Security Concerns
Shortages and rising prices due to the blockade of the Strait of Hormuz, conduit for about a third of global fertiliser trade, are a major concern in terms of global food security.
Russia accounts for about one-fifth of the global trade, but limited capacity, domestic export caps and recent Ukrainian attacks on major plants all constrain its ability to ramp up fertiliser output.
Drone Attacks on Russian Fertiliser Enterprises
"Well-known events occurring on our country's territory are leading to increased drone attacks on Russian (fertiliser) enterprises," Melnichenko told reporters on the sidelines of a conference in Moscow, adding that the impact was "significant enough".
Case Study: Dorogobuzh Plant Attack
A Ukrainian drone attack on Dorogobuzh, one of Russia's largest fertiliser plants, owned by major producer Acron, on February 25 killed seven people and has temporarily knocked out about 5% of the country's overall production capacity.
Dorogobuzh accounts for 11% of Russia's ammonium nitrate output and 9% of its NPK fertiliser production, a mixture of nitrogen, phosphorus and potassium. The plant is expected to be operational again in May.
Several other attacks have taken place in towns where major fertiliser plants are located.
Market Reactions and Supply Chain Adjustments
Melnichenko said that although prices for all three major types of fertilisers had risen, in his view the effective closure of the Strait of Hormuz has had no impact on the trade in potash, while disruption to phosphate trading was temporary as Middle East producers switch to ports outside the Gulf.
This, he estimated, would happen more quickly than the six months Russian fertiliser producers needed to switch from European to local ports after Western sanctions were imposed.
Natural Gas Dependency and Export Restrictions
Melnichenko said that production of nitrogen fertilisers from natural gas had suffered the most since a large share is produced from gas extracted from deposits around the Gulf.
Russia, which controls up to 40% of the global trade in ammonium nitrate, said on March 21 that it would stop exports of the fertiliser for one month.
(Reporting by Olesya Astakhova; Writing by Gleb Bryanski; editing by Guy Faulconbridge, Kirsten Donovan)
Key Takeaways
- •The February 25 drone attack on Dorogobuzh, owned by Acron, killed seven and halted roughly 10–11% of Russia’s ammonium nitrate output, further tightening nitrogen fertiliser capacity amid export caps. (themoscowtimes.com)
- •Russia enforces a one‑month ban on ammonium nitrate exports as of March, part of broader caps slated through May 2026, to prioritize domestic supply amid mounting shortages. (themoscowtimes.com)
- •Disruption of the Strait of Hormuz—through which about one‑third of global fertiliser trade transits—has slashed supply from key Middle East exporters, fueling fertilizer price surges and threatening global food security. (lemonde.fr)
References
Frequently Asked Questions about Russian billionaire says Ukrainian drone attacks affect nitrogen fertiliser trade
1How have Ukrainian drone attacks affected the Russian fertiliser industry?
Ukrainian drone attacks have significantly disrupted Russia's nitrogen fertiliser production, leading to shortages, plant shutdowns, and rising prices.
2Which Russian fertiliser plant was targeted in recent drone attacks?
The Dorogobuzh plant, one of the largest in Russia, was attacked, causing temporary loss of about 5% of the country's production capacity.
3What impact has the blockade of the Strait of Hormuz had on global fertiliser trade?
The blockade has caused shortages and rising prices for fertilisers, raising concerns about global food security.
4How much of the global ammonium nitrate trade does Russia control?
Russia controls up to 40% of the global trade in ammonium nitrate.
5Are fertiliser prices affected by these disruptions?
Yes, prices for all three major types of fertilisers have increased due to the disruptions from drone attacks and trade blockades.
