Business news from Ukraine

Business news from Ukraine

Ostchem reduced fertilizer production by 7.5%

28 July , 2025  

The plants of the Ostchem nitrogen holding, which unites the nitrogen businesses of Group DF, produced 849,900 tons of mineral fertilizers in January-June 2025, down 7.47% from the same period in 2024, when 918,500 tons of fertilizers were produced, according to a press release issued by the holding on Monday.

According to the report, Cherkasy Azot produced 567,100 tons of products in the first half of the year, which is 21% less than last year. Rivneazot increased production by 40.9% to 282,700 tons from 200,700 tons last year.

The overall decline in production at the holding company was explained by forced equipment shutdowns at Azot in Cherkasy in the first quarter of 2025, as well as unstable energy supplies. During this period, the holding company redistributed production loads between plants and increased fertilizer production at Rivneazot.

“Our priority remains the stable supply of fertilizers to Ukrainian farmers, even in the most difficult times. The success of spring and autumn field work depends on this. In wartime, technological flexibility, adaptability, and non-standard management decisions are paramount for us as a manufacturer. In addition, we continue to invest in production stability and energy efficiency,” said Ostchem Production Director Serhiy Pavliuchuk.

The holding company specified that the production structure has changed slightly compared to last year. In the first half of the year, ammonium nitrate was the most produced product, with 355,700 tons. Last year, this figure was 362,900 tons. UAN came in second place with a production volume of 308,900 tons. In this segment, the share of Ukrainian production remains high due to the logistical advantages of Ukrainian manufacturers. Urea came in third with 138,300 tons (183,600 tons last year). A small share of production falls on VAS – 16,200 tons and ammonia – 22,600 tons.

The release notes that against the backdrop of declining domestic production, the flow of uncontrolled cheap imports into Ukraine continues to grow: in the first half of the year, 1.5 million tons of traditional fertilizers (nitrogen and complex) were imported into Ukraine, including 828,000 tons of nitrogen fertilizers. At the same time, imports of ammonium nitrate amounted to 190,000 tons (176,600 tons last year), urea – 379,600 tons (311,300 tons), and UAN – 61,490 tons (50,800 tons).

“For the first time, the volume of urea imports has more than doubled the volume of Ukrainian production, which is an alarming signal for the entire industry and requires systemic solutions,” Ostchem concluded.

Ostchem is a nitrogen holding company owned by Dmitry Firtash’s Group DF, which brings together the largest mineral fertilizer producers in Ukraine.

Since 2011, it has included Rivneazot and Cherkasy Azot, as well as Severodonetsk Azot and Stirol, which are not operating and are located in the occupied territories.

Cherkasy Azot (Cherkasy, Ukraine) is one of Ukraine’s largest chemical companies. Its design production capacity is 962,700 tons of ammonia per year, 970,000 tons of ammonium nitrate per year, 891,600 tons of urea per year, and 1 million tons of UAN per year.

PJSC Rivneazot is one of the largest chemical companies in Western Ukraine. On April 12, 2024, Group DF and South Korea’s Hyundai Engineering signed an agreement to build a chemical hub in Rivne. The project involves the construction of plants for the production of green ammonia and hydrogen based on renewable energy sources, as well as new enterprises and production sites for the production of nitrogen fertilizers and chemical derivatives.

 

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