Uralchem JSC and three Indian fertiliser companies — Rashtriya Chemicals and Fertilizers Limited, National Fertilizers Limited, and Indian Potash Limited — signed a memorandum of understanding to set up a joint venture to construct a urea plant in Russia. The signing ceremony was held in New Delhi, India.

The annual capacity of the urea plant is expected to be in the range of 1.8-2 million tonnes. The agreed basis for the joint venture is the supply of ammonia produced by Togliattiazot JSC and the financing of the project by the Indian companies until the commencement of the plant’s commercial operation.

The technical parameters and financial viability of the project are currently under a detailed examination. The parties are also negotiating the corporate structure and governance approach in respect of the joint venture.

Dmitry Konyaev, Uralchem CEO, said: “India is a leading agricultural player globally and also one of the world’s biggest consumers of mineral fertilisers. For Uralchem Group, India has historically been a strategic market, and we are committed to expanding and deepening our cooperation with Indian partners. We welcome this memorandum, which is another step in the continuous development of our long-term and mutually beneficial relations.”