Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Fertilizer cargo from Russia heads to U.S. as many worry about food shortages

Published 07/22/2022, 03:25 AM
Updated 07/22/2022, 03:36 AM
© Reuters. FILE PHOTO: Signage is seen outside of the U.S. International Trade Commission in Washington, D.C., U.S., August 31, 2020. REUTERS/Andrew Kelly
NG
-

By Arathy Somasekhar and Timothy Gardner

HOUSTON/WASHINGTON (Reuters) - A tanker carrying a liquid fertilizer product from Russia is about to arrive in the United States, sources and vessel tracking data showed in recent days, at a time of widespread worry that sky-high global fertilizer prices could lead to food shortages.

President Joe Biden's administration has not blacklisted Russian agricultural commodities, including fertilizers, in the aftermath of the Ukraine invasion. Still, many Western banks and traders have steered clear of Russian supplies for fear of running afoul of rapidly changing rules.

Russia and Ukraine are major exporters of fertilizer, key to keeping corn, soy, rice and wheat yields high. Farmers have scaled back fertilizer use due to high prices, and cut the amount of land they plan to cultivate.

Washington sanctioned Russian crude, refined products, coal and liquefied natural gas, and imposed an April 22 deadline to wind down imports.

The Liberia-flagged tanker Johnny Ranger was scheduled to arrive in New Orleans on Monday carrying about 39,000 tonnes of urea ammonium nitrate solution, a fertilizer produced by combining urea, nitric acid and ammonia, the sources and Refinitiv Eikon data showed.

The vessel loaded last month at St. Petersburg, according to Eikon data.

Details on the seller and buyer were not immediately available. The U.S. Treasury Department and the U.S. Customs and Border Protection agency declined to comment.

A State Department spokesperson said the United States has never sanctioned food or agricultural goods from Russia. "Unlike the Russian government, we have no interest in weaponizing food to create humanitarian crises at the expense of vulnerable populations."

U.S. non-food sanctions will remain in place until Russian President Vladimir Putin stops the war in Ukraine, the person added.

© Reuters. FILE PHOTO: Signage is seen outside of the U.S. International Trade Commission in Washington, D.C., U.S., August 31, 2020. REUTERS/Andrew Kelly

In 2021, the United States imported $262.6 million worth of urea ammonium nitrate fertilizers from Russia, according to the Commerce Department.

This week, the U.S. International Trade Commission revoked hefty anti-dumping and anti-subsidy duties on urea ammonium nitrate fertilizers from Russia in an effort to ease fertilizer shortages and price increases.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.