Norwegian fertilizer maker Yara has halted all purchases from Russian companies and individuals affected by sanctions imposed this week, Report informs referring to Reuters.
The global food supply, already under pressure from high commodity prices, is at risk from the invasion of Ukraine, it said, reiterated a warning it made last week.
On March 9, Yara announced cutbacks to its European fertilizer output due to surging prices for natural gas used in manufacturing fertilizers.
The EU on March 9 announced fresh sanctions against Russia and its ally Belarus over the war, which Moscow describes as a “special operation.”
“Yara is currently reviewing the detailed scope and impact of the sanctions,” the company said in a statement.
Yara will seek to use its global production system to keep supplying customers and secure continuity in food supply chains, it said.
“However, Yara repeats its concern for global food security and calls on government action to protect food supply chains and decrease dependency on Russia.”
Besides, France is preparing to abandon the import of fertilizers and natural gas from Russia, on the basis of which fertilizers are produced.
The BFMTV channel, citing representatives of the agricultural sector, reported that French agriculture cannot do without fertilizer imports. At least 12.5% of imports of urea, one of the most widely used fertilizers in France, come from Russia, according to analysts at Agritel.
“Nitrogen fertilizer prices skyrocketed at the end of the summer, and the conflict in Ukraine contributed to additional growth. France itself doesn’t produce natural gas, and one of the fastest ways to establish exports will be to diversify supplies and invest in countries that own raw materials or process them,” the channel reports.
The French government has promised to present a plan to achieve economic resilience in order to reduce the impact of sanctions imposed against the Russian Federation. The plan will be presented by the prime minister’s office next week.