Slap in face for EU: US seeks 11 billion deal for fertilizers from Russia

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The Russia, US commercial agreement on diesel is enriched with a new, pivotal business initiative: the restart of exports of Russian agricultural fertilizers to the United States is now on the table.
Indeed, Vladimir Putin noted characteristically that deliveries are expected in «huge quantities».
Modern agriculture cannot function without the three primary types of fertilizers: potash, phosphate, and nitrogen. Beyond the vertical surge in crop yields, they enhance resistance to drought and frost, accelerate photosynthesis, strengthen root systems, and extend fruiting periods. Timely application in correct quantities allows for harvests increased by 50% up to 300%.

The critical dependence of the 635 billion American colossus

The issue is of vital importance for the US, as it possesses the strongest agri-food sector on the planet. The value of American agricultural output is projected to exceed 635 billion dollars, with net farmer profits estimated at 158 billion dollars.
Agricultural exports of the US generate over 190 billion dollars annually, constituting the fourth largest export category of the country after weapons, petroleum, natural gas, and electronics.
It is no coincidence, then, that Donald Trump describes agriculture as the cornerstone of the American economy and domestic stability.
However, American production is unable to meet domestic requirements:
- The US produces merely 10% to 15% of its requirements in potash fertilizers, maintaining a critical dependence on imports from Canada.
- Domestic production in phosphate fertilizers exceeds 8 million tons, but the deficit of 850,000 to 1.5 million tons was previously covered by Saudi Arabia and Russia, before sanctions intervened.
- Despite large domestic production of 14 million tons in nitrogen fertilizers (covering 94% of needs), the remaining gap was also supplemented by imports.
As a significant share of American fertilizers is exported to Canada, Brazil, and Mexico, domestic shortages become even more pronounced.

Record production for Russia, White House retreats

At the same time, the fertilizer production and export sector in Russia proved among the most resilient.
Russian output reached an all-time record of 65 million tons, of which 22 million tons fully covered the domestic market and the rest was channeled abroad.
Despite Western sanctions, Russian exports grew by 7%, yielding revenues of 11 billion dollars, as flows were redirected toward BRICS countries, Africa, Indonesia, and Malaysia.
While Europe and the US had initially withdrawn from buyers, Washington now appears to be demonstrating greater flexibility.
The White House chooses not to further burden a strategic sector of the American economy, which is already severely tested by record prices in diesel.

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