REG-OJSC PhosAgro: Gazprom Sulphur and PhosAgro Contract for Liquid Sulphur <Origin Href="QuoteRef">PHOR.MM</Origin>

PhosAgro PAOAnnouncement

17/02/2016 12:57

For Immediate Release                                       15 December 2015

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 PhosAgro
Irina Evstigneeva, Head of Corporate Finance and Investor Relations
ir@phosagro.ru
+7 495 231 3115 

Timur Belov, Press Officer
Anastacia Basos, Deputy Press Secretary
+7 495 232 9689

EM
Sam VanDerlip
vanderlip@em-comms.com
+44 7554 993 032
+7 499 918 3134



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