2023-07-05 13:28:40
One of the main fertilizer factories in the European Union, Lifosa, located in Lithuania and controlled by the Russian group EuroChem, could close due to Western sanctions, with the consequent risk of job loss for a significant number of workers, reported the chemical company on its website.
The plant has been closed since May for scheduled annual maintenance. On Monday, EuroChem’s owners confirmed that unless a solution is found that allows the factory to run efficiently with access to the necessary raw materials and its distribution network, they will be forced to initiate a closure process from October 2023.
“The imposition of sanctions on Lifosa and the cutting off of its sales and supply chain has created an impossible situation, characterized by severe shortages of raw materials, production stoppages and a lack of access to markets and financing,” said Samir Brikho. , CEO of EuroChem Group AG.
“Over the last 15 months, we have been in dialogue with the Lithuanian authorities to reach a mutually satisfactory agreement that allows our company Lifosa to continue to operate effectively and fully comply with EU sanctions. However, it is untenable for us to continue to run the business in this restrictive environment,” he added.
The manager also drew attention to the global impact of sanctions on the agri-food industry and the fight against hunger. “Thousands of farmers around the world depend on producers like us to supply them with fertilizer on time and at the right price (…) We call on governments and policy makers to put in place policies that allow supply chains to function freely. supply of food production, in order to avoid the worsening of the crisis and achieve the Objective of the United Nations (UN) to eliminate hunger by 2030”, he concluded.
EuroChem owns and operates mines and production facilities in Europe, South America, China, Kazakhstan and Russia. It employs more than 27,000 people in 40 countries. Its extensive sales and distribution network covers more than 100 countries. In 2021, EuroChem supplied more than 19 million tons of fertilizers, the equivalent of feeding some 250 million people. The company was affected by the sanctions imposed last year by the EU against Andrei Melnichenko, its founder. However, in March 2022, EuroChem announced the withdrawal of Melnichenko from its board of directors and as a beneficiary. Despite this, the EU sanctions have severely affected Lifosa’s operations.
With information from RT News
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