Mineral Fertilizer Production in Ukraine
The Odessa Port Plant (OPP) has not produced mineral fertilizers since the autumn of 2021, a shutdown that has significantly impacted Ukraine's fertilizer market and trade. The plant's infrastructure is currently used primarily for transshipping grain, leaving its fertilizer production potential entirely untapped. A privatization auction for the OPP, announced by Ukraine's Cabinet of Ministers for 2025, was canceled. The scheduled sale, set for November 25, 2025, did not proceed.
AGT, a company that collaborated with OPP under tolling agreements from 2019 to 2021, producing nearly 2 million tons of product, was barred from participating in the privatization without explanation. Subsequent proposals from AGT to restart the plant using a tolling raw material supply model were ignored by the authorities.
The OPP's Economic Potential
Experts believe that reactivating the OPP could drastically reduce fertilizer imports, saving Ukraine approximately $500 million annually. Oleksandr Horbunenko notes that by not utilizing existing production capacity like the OPP, the state is failing to realize its full potential. With a functioning plant, Ukraine could export a portion of the output, generating foreign currency revenue and providing stability against exchange rate fluctuations.
Launching the OPP could cut fertilizer imports by $500 million each year, while exports from the plant would bring in a similar amount in revenue. Horbunenko emphasizes that the most critical aspect is the possibility of stable, predictable fertilizer supplies. This would level out price volatility, reduce shortages and speculative situations, and allow farmers to plan their sowing seasons months in advance.
Thus, restarting the Odessa Port Plant holds significant potential to improve Ukraine's fertilizer market, yet its capacities remain unused to this day.
Restoring the OPP's operations could be a key factor in stabilizing Ukraine's fertilizer market, given the plant's substantial potential.
Experts stress the importance of stable fertilizer supplies for the agricultural sector, which would not only reduce imports but also provide economic benefits for the country. The situation regarding the plant's privatization and the revival of its production capabilities remains unresolved, and future developments could substantially impact Ukraine's agrarian economy. The plant's inactivity is particularly notable given Ukraine's status as a major global agricultural producer.