Ammonia production in Russia

2023: Growth in ammonia production by 1.5% to 17.28 million tonnes

In 2023, the volume of ammonia production in Russia reached 17.28 million tons. This is 1.5% more compared to 2022, when 17.02 million tons of these products were produced. Market trends are addressed in the BusinesStat survey published in early October 2024.

It is noted that ammonia is widely used in various fields. This is agriculture, industry,, medicine research activities. Coke, coal, coke gas and natural gas are used as raw materials for industrial ammonia production. Among the significant players in the Russian market are named LLC, Gazprom Neftekhim Salavat PAO Akron LLC, PJSC and KINEF JSC. Dorogobuzh Cheekinoazote

In 2019, the Russian Federation, according to estimates, produced 19.22 million tons of ammonia. In 2020, an increase of 2.1% followed - to 19.62 million tons, and in 2021 an increase of 1.2% was recorded with a final result of 19.86 million tons. But there was a 14.3% drop in 2022.

The review says that until 2022, about 23% of ammonia produced in Russia was exported. However, then, against the background of the formed geopolitical situation, the volume of exports decreased sharply, being at the level of 11%. Export-oriented manufacturers were forced to reduce production. In addition, in 2022, deliveries through the Togliatti-Odessa ammonia pipeline, which were used by PJSC Togliattiazot and JSC Minudobrenia, ceased. The main final recipients of ammonia delivered to the port of Odessa were the countries of the European Union and India.

However, already in 2023, production returned to growth due to an increase in demand and in-plant consumption in the domestic market. Analysts believe that in the future, the dynamics of production volumes will depend on the demand for ammonia both within the country and from foreign buyers. Exports will begin to grow as the terminal in the port of Taman enters service. In addition, opportunities are being considered for creating terminals in Ust-Luga and on the basis of the Nakhodka mineral fertilizer plant under construction.^[1]

2022: Decrease in ammonia production by 14.6% to 17 million tons

In 2022, about 17 million tons of ammonia were produced in the Russian Federation, which is 14.6% less than a year earlier. The decline was due to export restrictions, BusinesStat analysts said in August 2023.

They note that after the start of a special military operation in Ukraine, the supply of ammonia through the Togliatti-Odessa ammonia pipeline stopped. It was expected that the grain deal between Turkey, Russia, Ukraine and the UN would allow the resumption of pumping Russian ammonia through Ukraine. One of the conditions for extending the deal put forward by the Russian side was the export of ammonia through Odessa. However, by the end of 2022, ammonia pumping was never resumed. The ammonia pipeline, which exported about 2.5 million tons of ammonia, was used by PJSC Togliattiazot and JSC Minudobreniya. The main final recipients of ammonia delivered to the port of Odessa were the countries of Europe and India.

About 17 million tons of ammonia were produced in Russia

In 2022, due to Western sanctions, transshipment terminals in the seaports of the Baltic countries became unavailable for Russian ammonia. Shipments through the Baltic ports of Ventspils in Latvia and Sillamäe in Estonia stopped due to the refusal of shipowners to work with businesses from Russia. After the introduction of personal sanctions against the Russian owners of large chemical holdings, the accounts of SIA Ventamonjaks, which serves ammonia storage facilities in the Latvian port (owned by Uralchem Freight Limited Kipra), were "frozen." In Estonia, the property of Dry Bulk Terminal (a division of Akron Concern) and EuroChem Terminal Sillamae (a division of EuroChem Concern) was "frozen."

In 2022, export-oriented producers were forced to significantly reduce production and accelerate the implementation of projects for the construction of their own transport and transshipment infrastructure to restore ammonia shipments from Russia, the study said.^[2]

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