May 2 (Reuters) - U.S. agriculture companies have been
brisk importers of Russian fertilizer since the 2022 Ukraine
invasion, a practice that is unwittingly helping fund Russia's
war against Ukraine, U.S. producer CF Industries ( CF ) said on
Thursday.
The U.S. does not impose sanctions directly on Russian
fertilizer, which is important to global food supplies and
prices. On Wednesday, the U.S. Treasury Department issued
hundreds of fresh sanctions on other Russian targets over the
war.
"What's kind of shocking is there's been all of this focus
on not funding the Russian war machine and not buying Russian
gas," CF's CEO Tony Will said on a quarterly earnings call. "And
yet, the U.S. is arms wide open to take urea and UAN (urea
ammonium nitrate) coming out of Russia, which is effectively
just natural gas that's been converted (into fertilizer).
"So the U.S. is funding the very war effort over there that
on the one hand it's condemning."
A White House spokesperson did not respond to a request for
comment.
The biggest U.S. urea importers from Russia since its
invasion of Ukraine in February 2022 to March 2024 are ECO
Fertilizers, Swiss-based EuroChem and U.S. grain-handling giant
Archer-Daniels-Midland ( ADM ), according to U.S. import data
provided to Reuters by ImportYeti, a company that provides
information about suppliers by tracking bills of lading.
ECO Fertilizers, the company Russian fertilizer producer
Acron Group uses to import into the U.S., according to CF,
imported about 575 million metric tons during the period.
The company's address is listed online as Hollywood,
Florida, but it could not be immediately reached at its email
address.
EuroChem, founded by Russian businessman Andrey Melnichenko,
imported at least 81 million tons of urea from Russia via its
U.S. subsidiaries.
ADM imported at least about 16.8 million tons of urea from
Russia between February 2022 and March 2024 via five
subsidiaries. Some grain handlers, which buy crops from farmers,
use those relationships to sell growers inputs such as
fertilizer as well.
EuroChem and ADM did not immediately respond to requests for
comment.
CF, based in Illinois, is one of the world's biggest
nitrogen fertilizer producers and competes against Russian
imports. Nitrogen fertilizer is made from natural gas and the
U.S. has imposed sanctions on a project owned by Russia's
largest producer of liquefied natural gas.
CF does not import Russian fertilizer, company spokesperson
Chris Close said.
Will did not say whether CF is calling on the U.S. to
sanction Russian fertilizer.
Wholesale producers typically sell fertilizer to separate
retail companies that sell it directly to farmers, or through
their own retail stores.