Indian Firms Sign MoU With Uralchem Group To Set Up Fertiliser Plant In Russia

Rashtriya Chemicals and Fertilisers Limited (RCF), National Fertilisers Limited (NFL), and Indian Potash Limited (IPL) signed a memorandum of understanding with Russia’s Uralchem Group to establish a 1.8–2 million tonne urea plant in Russia.

This collaboration marks one of the largest joint ventures between Indian companies and their foreign counterparts in fertiliser production outside India.

Russian President Vladimir Putin signed the agreement during his visit to India, marking a significant milestone in India’s agricultural and fertiliser sector.

The project is comparable to Oman India Fertiliser Ltd, which produces approximately 1.65 million tonnes of urea annually and includes India’s IFFCO and Kribhco as partners.

Uralchem JSC, a subsidiary of the Uralchem Group, is one of the world’s leading producers and exporters of nitrogen and compound fertilisers. Its production facilities are located in Russia’s Kaliningrad, Kirov, Moscow, and Perm regions.

Uralchem Group also includes Uralkali PJSC and Toaz JSC, with a combined production capacity of roughly 25 million tonnes and a workforce of approximately 38,000 employees.

The planned Russian plant will receive ammonia supplies from Toaz JSC, while financing will initially be handled by the Indian companies until commercial operations commence.

Technical parameters, financial viability, corporate structure, and governance of the joint venture are currently under detailed review.

Strategic Importance and Statements

Dmitry Konyaev, CEO of Uralchem, welcomed the development, noting that India is a leading global agricultural player and one of the largest consumers of mineral fertilisers. He emphasised that India has historically been a strategic market for Uralchem, and the company is committed to expanding cooperation with Indian partners.

In a joint statement, President Putin and Prime Minister Narendra Modi highlighted steps to ensure a long-term supply of fertilisers to India.

PM Modi praised Russia’s role in fostering collaboration in this sector and underscored the potential of joint ventures in agriculture and allied areas, including the marine and aquaculture sectors.

Even outside this joint venture, fertiliser imports from Russia to India have grown significantly in recent years. Between 2017–18 and 2023–24, India’s imports of Russian urea increased at a compound annual growth rate (CAGR) of 62.31%, while total imports of fertilisers, including DAP and NPKS, grew at around 22.01% CAGR.

Russia’s share of India’s total fertiliser imports rose from 7.68% in 2017–18 to nearly 27% in 2023–24, establishing it as a key supplier in India’s fertiliser market.

The joint venture aims to enhance India’s fertiliser security, support agricultural productivity, and strengthen India-Russia industrial cooperation.

This partnership leverages combined expertise to become a landmark example of international collaboration in the fertiliser sector.

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