Indian Firms Partner with Uralchem to Collaborate on Urea Plant in Russia

In a significant development for the fertiliser sector, Indian companies Rashtriya Chemicals and Fertilizers Limited, National Fertilizers Limited, and Indian Potash Limited have signed a memorandum of understanding with Russia’s Uralchem Group.  

This collaboration aims to establish a 1.8-2 million tonnes urea plant in Russia, marking one of the largest joint ventures between Indian and foreign partners in this sector outside India. 

Details of the Urea Plant Agreement 

The agreement was signed during Russian President Vladimir Putin's visit to India, highlighting the growing cooperation between the two nations.  

The plant will be supplied with ammonia from Togliattiazot JSC, with Indian firms financing the project until it becomes operational.  

This venture follows the successful Oman India Fertiliser Ltd project, which produces 1.65 million tonnes of urea annually. 

Uralchem's Strategic Role 

Uralchem JSC, part of the Uralchem Group, is a major player in the global fertiliser market. With production facilities across Russia, the group boasts a capacity of 25 million tonnes.  

Uralchem CEO Dmitry Konyaev emphasised India's importance as a strategic market, noting the country's significant consumption of mineral fertilisers. 

Read More: Russia’s Sberbank Launches First-India Mutual Fund for Russian Investors! 

India's Increasing Fertiliser Imports from Russia 

Data indicates a substantial rise in India's fertiliser imports from Russia, with the latter's share growing from 7.68% in 2017-18 to nearly 27% in 2023-24.  

This growth underscores Russia's pivotal role in India's fertiliser supply chain, particularly in urea and di-ammonium phosphate (DAP). 

Conclusion 

The collaboration between Indian firms and Uralchem for a 1.8-2 million tonnes urea plant in Russia marks a significant step in strengthening the fertiliser supply chain. With Russia's growing share in India's fertiliser imports, this venture is poised to further solidify bilateral trade relations. 

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