US carves out mechanism for insulating Russian fertilizer exports from sanctions

While the USA on Thursday sent out a strong message to India on “consequences” of bypassing sanctions, the Biden administration has ironically carved out a mechanism that would insulate Russian fertilisers from possible sanctions.

The Office of Foreign Assets Control (OFAC) of the US Treasury published a new general license dated March 24, which effectively removed Russian mineral fertilizers from possible sanctions. They were included in the list of vital products along with agricultural products, medicines and medical products.

In their opinion, the reason for the US decision was the shortage in the world market against the backdrop of a disruption in the logistics of supplies from Russia.


In the US, the share of Russian supplies in total imports is 6% for potash, 20% for diammonium phosphate and 13% for urea.

In February, India had launched talks with Russia for long-term supply of fertilisers. Had it gone through, it would have helped India secure imports at stable rates despite strong global prices. It would have also offered some relief from geopolitical instability affecting supplies. But the situation changed after February 24.

In FY 2021, Russia alone accounted for over 17 percent of total MOP (muriate of potash) imports and nearly 60 percent of NPK (nitrogen, phosphorous and potassium) imports.