EU Tariffs Slash Russian Fertilizer Exports

November 5, 2026 · Tarım Pusulası

Russia's nitrogenous fertilizer exports to the European Union have been hit hard by additional customs duties imposed by the bloc, pushing producer profit margins down to single digits.

EU Tariffs Severely Cut Shipments

Additional customs duties implemented by the European Union have dealt a significant blow to Russia's nitrogenous fertilizer exports. With the bloc imposing special levies on top of the existing 6.5% basic customs duty effective July 1, 2026, the total tax burden on ammonium nitrate has surged to the 24.5% to 28.5% range. Consequently, total shipments to the EU plummeted from 3.76 million tons to 1.01 million tons in the first nine months of 2026. The monetary value of exports for nitrogenous fertilizers saw a 90% decrease, while the decline for potassic fertilizers remained at around 5%.

Prices Fall, Profit Margins Erode

The contraction in the European market has directly shaken the financial stability and profitability of Russian fertilizer producers. Increased logistics expenses due to altered shipping routes have intensified pressure on producers' export revenues. In line with these developments, the average export price of Russian nitrogenous fertilizers has fallen by 18% to 22%. As a result of the sharp drop in revenue and rising costs, producers' profit margins, previously hovering between 12% and 15%, have been squeezed down to the 3% to 5% level.

Turkey and India Emerge as Alternative Markets

Russian producers, having lost ground in the European Union market, have begun redirecting their shipments to the Turkish and Indian markets. However, fertilizer sales prices in these two countries are estimated to be 15% to 20% lower compared to the European market. The shift of Russian fertilizer to these routes creates a critical dynamic for the Turkish domestic market. Nevertheless, the exact volume of fertilizers being diverted to Turkey by Russian producers and their potential impact on local market prices remain unclear.

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