9 months ago
India-Russia Joint Urea Plant Agreement Signed
Uralchem, a big company that makes fertilizers, has teamed up with three Indian companies to build a large urea plant in Russia.
The plant will make a lot of urea every year, which is important for farming.
The Indian companies will help pay for the project, and Uralchem will provide the ammonia needed to make urea.
They are still figuring out the details, but this is a big step in their partnership.
Uralchem thinks India is a very important market for fertilizers and wants to work more with Indian companies.
This project is part of their long-term plan to work together.
The plant is expected to start operating in 2027-28 and will cost about $1.2 billion.
India will have the first right to buy at least half of the urea produced.
Uralchem and three Indian fertilizer companies signed an MoU to build a urea plant in Russia.
The plant will have an annual production capacity of 1.8 to 2 million tonnes.
Indian companies will provide financing for the project until it starts operating.
Technical and financial details, as well as the corporate structure, are still being discussed.
Uralchem views India as a strategic market and aims to deepen cooperation with Indian partners.
- Who
- Uralchem JSC, Rashtriya Chemicals and Fertilizers Limited (RCF), National Fertilizers Limited (NFL), Indian Potash Limited (IPL)
- What
- Signing of a memorandum of understanding (MoU) to establish a joint venture for a urea plant in Russia
- Where
- Russia (plant location), New Delhi (signing location)
- When
- The signing ceremony took place in New Delhi, India (exact date not specified)
- Why
- To expand cooperation and meet the demand for mineral fertilizers in India
Indian Government and Companies
Uralchem and Russian Government
Project Financing
Indian Government and Companies
Indian companies will provide financing for the project until it starts operating.
Uralchem and Russian Government
Uralchem will supply ammonia and support the project technically.
Urea Supply
Indian Government and Companies
India will have the first right to purchase at least 50% of the urea produced.
Uralchem and Russian Government
Uralchem aims to meet the demand for mineral fertilizers in India and deepen cooperation.
Key facts
- Companies Involved
- Uralchem, Rashtriya Chemicals, National Fertilisers, Indian Potash
- Project Location
- Russia
- Production Capacity
- 1.8 to 2 million tonnes annually
- Ammonia Supply
- Togliattiazot JSC
- Investment
- Project Timeline
- Target to start operation in 2027-28
- Uralchem's Global Workforce
- Over 38,000 employees
- Uralchem's Production Capacity
- Around 25 million tonnes
Quotes
Narendra Modi
Prime Minister of India
“Our close cooperation in the fields of agriculture and fertilisers is vital for food security and farmer welfare. I am pleased that, taking this cooperation forward, both sides are now working together on (raising) urea production.”
thehindubusinessline.com
Emin Bayramov
Spokesperson for Uralchem
“The annual capacity of the urea plant is expected to be in the range of 1.8-2 million tonne. The agreed basis for the joint venture is the supply of ammonia produced by Togliattiazot JSC and the financing of the project by the Indian companies until the commencement of the plant’s commercial operation.”
thehindubusinessline.com
Dmitry Konyaev
CEO of Uralchem
“India is a leading agricultural player globally and also one of the world’s biggest consumers of mineral fertilisers. For Uralchem group, India has historically been a strategic market, and we are committed to expanding and deepening our cooperation with Indian partners. We welcome this memorandum, which is another step in the continuous development of our long-term and mutually beneficial relations.”
thehindubusinessline.com
