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PhosAgro PAOAnnouncement

01/11/2017 12:00

For Immediate Release   1 November 2017 

PhosAgro-Cherepovets Merger with Apatit Completed

Cherepovets (Vologda region) – PhosAgro (Moscow Exchange, LSE: PHOR), one of
the world’s leading vertically integrated producers of phosphate-based
fertilizer and high-grade phosphate rock, announces the completion of the
merger of JSC PhosAgro-Cherepovets into JSC Apatit (Cherepovets).

As of today, 1 November 2017, JSC PhosAgro-Cherepovets ceases its activities
as a legal entity. All property, obligations and rights under contracts, and
income from the sale of goods are now the property of JSC Apatit. On 2 June
2017, JSC Apatit was re-registered in Cherepovets in the Vologda region from
the city of Kirovsk in the Murmansk region, where the Kirov branch of JSC
Apatit was established.

PhosAgro CEO Andrey Guryev said: "We believe that the merger should contribute
to further improving efficiency and the competitiveness of our products, as
well as to PhosAgro’s busienss as a whole.”

The merger does not entail significant changes in the structure of tax
payments to the budgets of the Murmansk and Vologda regions, where JSC Apatit
and JSC PhosAgro-Cherepovets are among the largest taxpayers. Optimisation of
production personnel at both sites in connection with the reorganisation is
not planned, and all social obligations will be fulfilled as before.

After evaluating the functioning of the merged entity, PhosAgro may consider
merging JSC Metakhim with JSC Apatit, thus completing the merger of the
Company’s production assets into one legal entity. The transition to a
single entity for the Company’s production assets and PJSC PhosAgro is
currently not being considered.

Notes to Editors

PhosAgro (www.phosagro.ru) is one of the world’s leading vertically
integrated phosphate-based fertilizer producers in terms of production volumes
of phosphate-based fertilizers and high-grade phosphate rock with a P(2)O(5)
content of not less than 37% (according to IFA, Fertecon and CRU).

The Company is the largest phosphate-based fertilizer producer in Europe, the
largest producer of high-grade phosphate rock (with a P(2)O(5) content of not
less than 37%) worldwide and the third largest MAP/DAP producer in the world,
according to IFA. PhosAgro is also one of the leading producers of feed
phosphates (MCP) in Europe, and the only producer in Russia. PhosAgro is
Russia’s only producer of nepheline concentrate.

PhosAgro’s main products include phosphate rock, over 35 grades of
fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are
used by customers in 100 countries spanning all of the world’s inhabited
continents. The Company’s priority markets outside of Russia and the CIS are
Latin America, Europe and Asia.

PhosAgro’s shares are traded on the Moscow Exchange, and global depositary
receipts (“GDRs”) for shares trade on the London Stock Exchange (under the
ticker PHOR). Since 1 June 2016, the Company’s GDRs have been included in
the MSCI Russia and MSCI Emerging Markets indexes.



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