Published by Global Banking & Finance Review®
Posted on March 6, 2026
3 min readLast updated: April 1, 2026
Add as preferred source on GoogleRussian fertiliser producers, despite being the world’s largest exporter, cannot fill the potential global supply gap from a Middle East disruption due to domestic obligations, export caps, limited capacity increases, and damage from Ukrainian drone attacks.
By Gleb Bryanski and Anastasia Lyrchikova
MOSCOW, March 6 (Reuters) - Fertiliser producers in Russia, the world's largest exporter, will not be able to make up for a potential global shortfall linked to the U.S.-Iran conflict as their ability to boost supply is constrained, industry sources told Reuters on Friday.
The war has shut down fertiliser plants in the Middle East and severely disrupted shipping routes via the Strait of Hormuz, conduit for about a third of global trade in fertilizers.
Russia accounts for about one-fifth of global fertiliser trade, but limited capacity, domestic export caps and recent Ukrainian attacks on major plants all constrain its ability to ramp up output, the sources said.
DOMESTIC SUPPLY OBLIGATIONS
New export-oriented plants are not expected to come on stream before 2027, according to one source who spoke on condition of anonymity.
"Higher prices look great on paper, but Russian producers are boxed in by domestic supply obligations, especially ahead of the planting season," said another industry source, who also spoke on condition of anonymity.
"And any windfall profits are likely to draw government attention as it looks for ways to boost budget revenues."
A third source, also speaking on condition of anonymity, said companies are currently focused on meeting domestic demand.
"It may be possible to cover, over a short horizon, the demand left unmet without the Middle East, but in the long term it is too large a volume to replace," the source added.
A Ukrainian drone attack on Dorogobuzh, one of Russia's largest fertiliser plants, owned by major producer Acron, on February 25 has temporarily knocked out about 5% of the country's overall production capacity and killed seven people.
Dorogobuzh accounts for 11% of Russia's ammonium nitrate output and 9% of its NPK fertiliser production, a mixture of nitrogen, phosphorus and potassium.
ONE QUARTER OF GLOBAL TRADE BY 2030
Russia, also the world's top wheat exporter, introduced fertiliser export restrictions in 2021 to ensure sufficient supply on the domestic market.
Andrey Guryev, head of the industry lobby, estimated the gap between lower domestic and higher export prices at about 15% during a meeting with President Vladimir Putin in 2025.
He also told Putin that Russia is aiming to capture one-quarter of global fertiliser trade by 2030.
Russian fertiliser producers have been spared Ukraine-related Western sanctions in order to ensure global food security, but face payment and logistical difficulties related to sanctions.
Brazil, India and China are the biggest buyers of Russian fertilizers, and it also exports to the U.S.
Shares in two of Russia's publicly traded producers, Acron and PhosAgro, have risen modestly, by 3% and 4%, respectively, on the Moscow Exchange since the U.S. and Israeli attacks on Iran began on February 28.
"A shortage of phosphate fertilisers, amid China's export restrictions, the shutdown of sulphur production in Qatar, and tensions in the Strait of Hormuz, is a powerful driver for price increases in the market," T-Bank analysts said in a research note.
"Against this backdrop, PhosAgro, as one of the key global suppliers, could strengthen significantly."
(Writing by Gleb Bryanski; Editing by Jan Harvey)
Capacity limits, domestic export caps, and plant disruptions prevent Russian producers from increasing exports to cover the global shortfall.
The conflict shut down Middle East fertiliser plants and disrupted shipping, tightening global supply and pushing prices higher.
A Ukrainian drone attack temporarily knocked out 5% of Russian capacity at the Dorogobuzh plant, affecting ammonium nitrate and NPK output.
Brazil, India, China, and the U.S. are the largest importers of Russian fertilisers.
Fertiliser firms are not directly sanctioned to protect food security, but they face indirect payment and logistics issues from broader sanctions.
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