Gazprom Sulphur and PhosAgro Contract for Liquid Sulphur

OJSC PHOSAGRO - Gazprom Sulphur and PhosAgro Contract for Liquid Sulphur

PR Newswire

London, December 15

Gazprom Sulphur and PhosAgro Sign Contract for Supply of Liquid Sulphur through 2021

Moscow – Gazprom Sulphur and PhosAgro have signed a five-year contract for the supply of liquid sulphur, based on market prices, to PhosAgro-Cherepovets and the Balakovo branch of Apatit for the period from 1 January 2016 to 31 December 2020.

This agreement will enable PhosAgro-Cherepovets and the Balakovo branch of Apatit to fully meet their demand for liquid sulphur, which is a raw material used in the production of mineral fertilizers. These facilities’ demand for liquid sulphur has grown following increases in production capacities.

Gazprom Sulphur CEO Andrey Lazukov said: “The parties have agreed to set the price of sulphur based on the principles of transparency and a balance of the interests of all sides. This mechanism uses publicly available data from independent sources. In order to increase the volume of liquid sulphur supplies, PhosAgro has also expressed its willingness to allocate additional tanker cars to transport the liquid sulphur that its production facilities will use. This agreement will enable long-term production planning and predictable delivery volumes for PhosAgro’s plants. It will also decrease the overall level of tension surrounding liquid sulphur supplies that is currently affecting the market due to the lack of appropriate railcar capacities.”

PhosAgro CEO Andrey Guryev said: “We are pleased to restart our partnership with Gazprom Group companies, and hope that they will be long-term and constructive in all areas of doing business.”

For further information please contact:OJSC PhosAgroIrina Evstigneeva, Head of Corporate Finance and Investor Relations[email protected]+7 495 231 3115 Timur Belov, Press OfficerAnastacia Basos, Deputy Press Secretary+7 495 232 9689EMSam VanDerlip[email protected]+44 7554 993 032+7 499 918 3134