India and Russia announce joint investments in mineral fertiliser production

The Russian Direct Investment Fund (RDIF), Indian Potash Ltd and producers of phosphate-containing fertilisers PhosAgro Friday announced joint investments in mineral fertiliser production in Russia and India.

Under the agreement, PhosAgro will also supply mineral fertilisers to Indian partners on a long-term basis. PhosAgro will supply up to 2 million tonnes (MT) during 2019-2021 and the potential value of this volume of fertilisers is around USD 1 billion, it said in a release.

"This cooperation agreement significantly contributes to the development of Russia’s high-tech non-energy exports and gives an additional impetus to further investments into our mineral fertilisers sector, which in turn will bolster Russia’s and India’s food security and increase trade between our countries," PhosAgro CEO Andrey Guryev said.

The parties to this agreement will consider the possibility of jointly implementing attractive investment projects in the area of mineral fertiliser production, including the construction of production facilities and related infrastructure, as well as the introduction of advanced technologies in Russia and India.

"A partnership with India's leading fertiliser producer will further strengthen the position of our portfolio company PhosAgro in international markets and will make an important contribution to the further development of bilateral trade and economic cooperation between Russia and India," RDIF CEO Kirill Dmitriev said.

RDIF was established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors.

The announcement comes in the backdrop of India and Russia signing several pacts in fields of space, nuclear energy, railways, among others on Friday.

(With inputs from agencies.)