At 2019 St Petersburg International Economic Forum, PhosAgro and Ultramar Sign Long-Term Contract for the Transhipment of Mineral Fertilizers Through the Ultramar Terminal in the Port of Ust-Luga

MOSCOW, June 7, 2019 /PRNewswire/ -- PhosAgro Group, a Russian vertically integrated company and one of the world's largest producers of phosphate-based mineral fertilizers, and Ultramar, a Russian freight forwarder shipping mineral fertilizers in containers, signed a long-term contract at the St Petersburg International Economic Forum PhosAgro on the transhipment of PhosAgro fertilizers through a new terminal that Ultramar is building in the port of Ust-Luga. The transhipment of PhosAgro products through the Ultramar terminal will begin in mid-2021.

The agreement was signed by PhosAgro's CEO, Andrey Guryev, and Ultramar's CEO, Andrey Bonch-Bruevich.

In accordance with the its long-term development strategy, PhosAgro plans to increase production of fertilizers and feed phosphates to 11.5 million tonnes per year by 2025. In addition to developing its sales network in its priority market of Russia, PhosAgro will continue to expand its presence and increase the competitiveness of its products in foreign markets, both by supporting sales through high-tech transhipment facilities and by reducing transport costs.

"Momentous events in the area of logistics are becoming a tradition at the St Petersburg Economic Forum. At the 2015 Forum, PhosAgro, in partnership with Ultramar, put into operation a state-of-the-art Smart Balk Terminal, which over four years, operating under optimal conditions, has ensured the transhipment of 5 million tonnes of fertilizers", noted PhosAgro's Guryev. "The addition of the Ultramar terminal to PhosAgro's logistics system in 2021 will provide the Company with additional transhipment facilities for the long term and will, by optimising the distribution of export volumes, increase PhosAgro's shipments through Ust-Luga to 3 million tonnes annually.

"The signing of this agreement with PhosAgro Group, one of the world's top three producers of phosphate-based fertilizers, is certainly a significant event for Ultramar LLC. Without the support of our strategic partner, this project would have been impossible. The terminal will create competitive advantages for Russian exporters in both their short- and long-term development programmes, since the technological solutions used in the design and construction of the terminal provide for projected growth in exports of Russian mineral fertilizers, also taking into account an increasing number of cargo classifications for many years to come. As a result of joint work with the Government of the Leningrad region, a unique transhipment facility is being created, the launch of which will rectify the shortage of port facilities needed to transport fertilizers through ports in the north-west [of Russia]", said Ultramar's Bonch-Bruevich.

About PhosAgro

PhosAgro is one of the world's leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P₂O₅ content of 39% and higher.

The Company is the largest phosphate-based fertilizer producer in Europe (by total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of high-grade phosphate rock with a P₂O₅content of 39%, a top-three producer of MAP/DAP globally, one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia, and Russia's only producer of nepheline concentrate (according to the RAFP).

PhosAgro's main products include phosphate rock, 39 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 100 countries spanning all of the world's inhabited continents. The Company's priority markets outside of Russia and the CIS are Latin America, Europe and Asia.

PhosAgro's shares are traded on the Moscow Exchange, and global depositary receipts (GDRs) for shares trade on the London Stock Exchange (under the ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in the MSCI Russia and MSCI Emerging Markets indexes.

More information about PhosAgro can be found on the website: www.phosagro.ru.