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Ships carrying Russian fertilizers find way to Brazil despite sanctions -Breaking

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© Reuters.

Ana Mano

SAO PAULO (Reuters – Despite fears that Russia’s sanctions might cause a shortfall in fertilizer in Brazil due to lack of orders, preliminary shipping data has shown that Brazil is receiving its cargo and the vessels are headed for Brazil. It could be possible for normal crop planting seasons.

According to preliminary shipping data compiled and observed by Reuters by Agrinvest Commodities, at least 24 ships carrying nearly 678,000 tonnes Russian fertilizers are likely to arrive in Brazil within the next few weeks.

The data shows that 11 of 24 ships left port including Saint Petersburg, Murmansk and Moscow after the invasion of Ukraine. The majority of these vessels carry potassium chloride that is used to treat soya and corn.

Brazil relies on fertilizer imports.

Pebble Beach was last to leave Russia with a 33,500-tonne cargo of potassium chloride on April. The data indicated that 4 were on their way to Vitoria, Brazil’s Southeast.

According to a fertilizer trader, deals are still possible because foreign units of Russian companies continue to fulfill orders while the banks that have not been affected by Western sanctions receive payments.

According to Siacesp data, Brazil’s total imports of fertilizer, and other raw materials to produce plant nutrients, rose 24.57% to 9.795 millions tonnes during the first quarter. Only potassium chloride imports climbed 41.75% to 308 million tonnes.

These volumes prove that Brazil bought even though prices rose dramatically and Russia’s war on Belarus threatened to disrupt its sales. Brazil’s next quarter 2022 will be marked by delays and a shortage of fertilizer.

Canada’s Canpotex was the largest supplier of potassium chloride for Brazil, while Mosaic and Mosaic were its shareholders. Nutrien Siacesp reports that the NYSE:, Russia’s UralKali and Belarusian Potash Company are both listed.

According to data, Brazil’s Fertipar and Norway’s Yara were the largest three chemical importers, importing a total of 1.3 million tonnes in January and March.

Fertilizantes Tocantins owned by Russia’s privately-owned Eurochem also imported approximately 231,753 tons of potassium chloride over the time, which is 7.52%.

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