Speaking on the sidelines of a recent industry forum, the founder of major fertilizer producer EuroChem warned that increasing drone strikes on infrastructure are significantly hampering the production and export of nitrogen-based fertilizers, News.Az reports, citing Straits Times.
These disruptions are not only affecting regional logistics but are sending shockwaves through international markets that rely heavily on Russian agricultural inputs.
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Melnichenko emphasized that the specialized nature of nitrogen fertilizer production makes it particularly vulnerable to modern warfare. Damage to key pipelines and storage facilities has forced manufacturers to redirect shipments through more expensive and less efficient routes, leading to increased costs for farmers worldwide.
He noted that the cumulative effect of these attacks, combined with existing sanctions, is creating a “chokepoint” that threatens to reduce crop yields in developing nations, potentially exacerbating global hunger.
The billionaire’s comments come at a time when energy prices remain volatile, directly impacting the cost of natural gas, which is the primary raw material for nitrogen fertilizers. While some Western officials argue that food and fertilizer remain exempt from direct sanctions, Melnichenko pointed out that the “collateral damage” from infrastructure attacks and the reluctance of international banks to facilitate trade are creating a de facto blockade.
As the trade continues to face these logistical hurdles, experts suggest that the global market may see a sustained period of high prices, forcing a shift in how agricultural commodities are managed across the globe.
