RDIF invests in development of Russian and Indian chemical industry

Press release, 05.10.2018

New Delhi, 5 October 2018 − The Russian Direct Investment Fund (RDIF), the sovereign wealth fund of the Russian Federation, PhosAgro, one of the world's leading producers of phosphate-containing fertilizers, and the Indian state corporation Indian Potash Ltd (IPL) have announced joint investments in mineral fertilizer production in Russia and India.

The parties to this agreement will consider the possibility of jointly implementing attractive investment projects in the area of mineral fertilizer production, including the construction of production facilities and related infrastructure, as well as the introduction of advanced technologies in Russia and India.

The agreement also provides for the supply by PhosAgro of mineral fertilizers, which are known for their low levels of potentially-harmful impurities and high levels of efficiency, to Indian partners on a long-term basis. The volume of mineral fertilizer supplies may amount to up to 2 million tonnes during the period from 2019 to 2021. The potential value of this volume of fertilizers is approximately $ 1 billion.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
"The mineral fertilizer market is one of the fastest and most dynamically developing sectors in Russia’s agroindustry, in which about 70% of domestic produce is exported. A partnership with India’s leading fertilizer producer will further strengthen the position of our portfolio company PhosAgro in international markets and will make an important contribution to the further development of bilateral trade and economic cooperation between Russia and India."

Andrey Guryev, CEO of PhosAgro, said:
"This cooperation agreement significantly contributes to the development of Russia’s high-tech non-energy exports and gives an additional impetus to further investments into our mineral fertilizers sector, which in turn will bolster Russia’s and India’s food security and increase trade between our countries. "

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru

PhosAgro 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 P2O5 content of 39% and higher.

The Company is the largest phosphate-based fertilizer producer in Europe (by total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of high-grade phosphate rock with a P2O5 content of 39%, one of the leading producers of MAP/DAP globally, one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia, and Russia’s only producer of nepheline concentrate (according to the RAFP).

PhosAgro’s main products include phosphate rock, 39 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.

More information about PhosAgro can be found on the website: www.phosagro.ru

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Hayes / Andrew Leach
Hudson Sandler
Tel: +44 (0) 20 7796 4133