The Ukrainian president has said he would only support resumption of Russian ammonia exports through Ukraine if Moscow handed back prisoners of war, according to Reuters.

The news agency reported that Ukraine had proposed this arrangement to the United Nations but the idea has been rejected by Moscow. Ammonia, which is manufactured from natural gas, is used to produce nitrogen fertiliser.

Nitrogen critical to food security

In an effort to restart the trade in the interest of global food security, the United Nations has proposed that ammonia gas produced by Russian Uralchem be piped to the Russia-Ukraine border.

There it would be purchased by US commodities traded Trammo for export through the Black Sea.

If successful, the deal would provide much needed relief to the European and global nitrogen market.

As 70% of European nitrogen production is currently curtailed, the continent’s imports will increase significantly, placing further pressure on tight world markets.

Russia key supplier

Russia accounts for almost a quarter of global ammonia exports, half of which is exported via a pipeline through Ukraine to the port of Yuzhny near Odessa. Ukraine shut down this pipeline at the start of the war.

The agreement brokered by the United Nations and Turkey between Russia and Ukraine to facilitate grain exports from the Black Sea also provided for the resumption of this trade.

In recent weeks, Russia has complained that western countries are not doing enough to facilitate exports of Russian fertiliser, ammonia and grain.

There has been little appetite from traders, vessels or insurers to revisit this trade.

However, a UN agreement would provide a reliable export arrangement to relieve world markets.