Russian fertilizer exports shift toward BRICS as PhosAgro expands deliveries

PhosAgro raises BRICS deliveries by 20%

Russian fertilizer producers are directing a growing share of their exports toward BRICS markets as deliveries to parts of Europe decline and transport costs reshape established routes. PhosAgro supplied nearly 5 million tonnes of mineral fertilizers to BRICS countries in 2025, an increase of 20% from the previous year, chief executive Alexander Gilgenberg told Vesti.

The shift gives Russian suppliers greater exposure to the world’s largest fertilizer-consuming markets. India, China and Brazil together account for almost half of global mineral fertilizer consumption, according to Pravda.ru. Russia remains the world’s leading fertilizer exporter, with an estimated share of 18-20%. The Agriculture Ministry put the country’s annual overseas deliveries at 43 million tonnes.

India and China underpin growth

India has become a particularly important market for PhosAgro. The company delivered more than 2.6 million tonnes of mineral fertilizers to the country in 2025, more than twice its 2024 volume and a company record. During the first half of 2026, PhosAgro’s share of Indian mineral fertilizer imports increased from 32% to 37%, Gilgenberg said. Separately, Russian Fertilizer Producers Association head Andrey Guryev said total Russian fertilizer shipments to India had risen by 20% since the beginning of the year.

Russian sales to China are also increasing. InvestFuture reported that deliveries rose by one-third in the first half of the year to 3 million tonnes. Shipments had reached a record 5 million tonnes in the previous year, driven mainly by potassium chloride, after expanding 2.5-fold over three years. Russia and China together produce almost 40% of the world’s agrochemicals, creating scope for cooperation beyond trade in finished fertilizers.

Technology and logistics shape the pivot

Guryev identified ammonia, acids and fertilizer production as potential areas for Russian-Chinese technology cooperation. He also cited flotation reagents, sorbents and catalysts among the critical specialty chemicals that could support joint projects. Chinese credit ratings for major Russian companies and easier access to China’s offshore bond market could help finance such ventures, while alternative payment infrastructure could reduce exposure to Western banking channels.

PhosAgro is also adapting its product portfolio. At the Innoprom India exhibition in New Delhi, the company presented six grades of biologized NPK fertilizers containing microorganisms intended to improve plant nutrient uptake. Its broader portfolio comprises 58 mineral product grades. In Russia, PhosAgro is building a plant in Volkhov to manufacture potassium and sodium phosphates for the food industry. Pravda.ru reported that imports currently meet 80% of Russian demand for food-grade phosphates.

European route loses competitiveness

The expansion in BRICS markets coincides with a sharp contraction in fertilizer transport toward Finland. Fertilizer shipments to Finland fell 25-fold in July, reaching 10,000 tonnes, according to Pravda.ru. The publication linked the fall to an eightfold increase in rail tariffs ordered by Russia’s Federal Antimonopoly Service.

The tariff change makes some established northern routes substantially less competitive and encourages producers to seek other logistics chains and destinations. India, China and Brazil offer the scale to absorb larger Russian volumes, but longer supply lines, settlement arrangements and access to financing will remain important considerations for producers and traders. The combination of rising BRICS demand, product development and reduced access to traditional European routes is therefore altering both the destination and composition of Russia’s fertilizer business.