REG-PJSC PhosAgro: PhosAgro Halts Fertilizer Sales to Ukraine

PhosAgro PAOAnnouncement

25/05/2018 17:05

For Immediate Release   25 May 2018 

PhosAgro Halts Fertilizer Sales to Ukraine

Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading
vertically-integrated phosphate-based fertilizer producers, announces it has
stoped all sales and shipments of its products to Ukraine. The Company has
become aware that on 14 May 2018, the President of Ukraine enacted Decree No.
126/2018, which introduces sanctions in relation to, inter alia, JSC Apatit
and LLC PhosAgro-Ukraine, which is affiliated with PhosAgro. The sanctions
introduced by Ukraine include blocking of assets, restriction of trading
operations and a moratorium on the performance of obligations.

PhosAgro CEO Andrey Guryev said: “The discriminatory measures taken by
Ukraine will not have a meaningful negative impact on PhosAgro. Our flexible
production and sales models, combined with well-organised and efficient
logistics operations, mean that PhosAgro can quickly re-direct volumes
originally bound for Ukraine to other countries and markets where the business
climate is more welcoming, including to our domestic Russian market.

“It is our deep conviction that these measures will harm Ukrainian farmers
first and foremost. Ukraine remains a net importer of a wide range of
phosphate-based fertilizers and supplies from Russia have proven to be the
most efficient way to meet demand from Ukraine’s domestic agricultural
producers.”

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 39% (according to IFA, Fertecon and CRU).

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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