Govt to buy fertiliser from Russia via Oman, UAE amid Middle East supply risks
The government will also directly purchase fertiliser produced by Russia's JSC Shchekinoazot through UAE-based Delta Star Trading FZ-LLC.
The Cabinet Committee on Economic Affairs has, in principle, given the nod to directly import urea produced by Russia's Uralchem through Oman-based Diamond Horizons to meet the country's fertiliser demand ahead of the upcoming Boro season.
The government will also directly purchase fertiliser produced by Russia's JSC Shchekinoazot through UAE-based Delta Star Trading FZ-LLC.
The committee approved the two proposals at a meeting held today (1 October) with Finance Minister Amir Khosru Mahmud Chowdhury in the chair.
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Due to the ongoing conflict in the Middle East, there are concerns that imports of urea under government-to-government (G2G) agreements from the UAE's Fertiglobe and Saudi Arabia's SABIC could be disrupted as shipments pass through the Strait of Hormuz and the Bab al-Mandeb Strait. Russia is therefore being considered as an alternative source of urea.
Meanwhile, the Cabinet Committee on Government Purchase, also chaired by the finance minister, approved proposals to import a total of 110,000 tonnes of urea fertiliser, 30,000 tonnes from Karnaphuli Fertiliser Company Limited (KAFCO), 40,000 tonnes from Saudi Arabia's SABIC and 40,000 tonnes from the UAE's Fertiglobe.
The committee also approved proposals to import 80,000 tonnes of triple superphosphate and 80,000 tonnes of diammonium phosphate fertiliser from Morocco.
