In one of the biggest joint ventures between Indian and foreign partners in the fertiliser sector outside India, Rashtriya Chemicals and Fertilizers Ltd (RCF), National Fertilizers Ltd (NFL) and Indian Potash Ltd (IPL) have signed an MoU with Russia’s Uralchem Group to build a 1.8–2 million tons urea plant in Russia.
A Landmark Agreement Signed During Putin’s Visit
The agreement was finalised during the visit of Russian President Vladimir Putin to India. The collaboration marks one of the most significant joint ventures by Indian fertiliser companies to establish a production facility overseas. Currently, the largest such project is the Oman India Fertiliser Company (OMIFCO) in Oman, which produces around 1.65 million tons of urea annually with IFFCO and KRIBHCO as partners. The new Russia project will surpass it in scale once operational.
Uralchem: A Global player in Fertiliser Production
Uralchem JSC—part of the Uralchem Group—is among the world’s largest producers and exporters of nitrogen and compound fertilisers. Its production sites span Kaliningrad, Kirov, Moscow, and Perm regions of Russia. The broader Uralchem Group, which includes Uralchem JSC, Uralkali PJSC and Togliattiazot (Toaz JSC), has a combined production capacity of around 25 million tonnes.
The proposed urea plant will also receive ammonia supply from Toaz JSC, ensuring steady raw material input.
Indian Firms to Finance the Project Initially
Indian companies will fund the project until commercial operations begin. Technical parameters, financial viability and governance structures are currently under detailed examination. Both sides are working on the corporate framework for the joint venture. Uralchem Group CEO Dmitry Konyaev welcomed the partnership. He noted that India is a major global agricultural power and one of the world’s largest consumers of mineral fertilisers. For Uralchem, India remains a strategic long-term market, and the company is committed to expanding collaboration.
Russia’s Growing Role in India’s Fertiliser Supply
Even without this new venture, Russia has rapidly become one of India’s largest fertiliser suppliers. Imports from Russia have surged in recent years. Between 2017–18 and 2023–24, India’s urea imports from Russia grew at a CAGR of 62.31%. Imports of all Russian fertiliser products, including DAP and NPKS, grew at 22.01% CAGR in the same period. Russia’s share in India’s total fertiliser imports jumped from 7.68% in 2017–18 to nearly 27% in 2023–24, making it a major partner in India’s fertiliser landscape.
Beyond Fertilisers
Beyond the urea plant, both nations are exploring opportunities in the marine and aquaculture sectors. This adds to the growing strategic and economic partnership between India and Russia. The upcoming 1.8–2 million tons’ urea plant represents a bold step in ensuring long-term fertiliser availability for India. As reported by business-standard.com, with rising demand, higher import dependence and volatile global markets, this joint venture strengthens India’s position and deepens cooperation with a trusted partner.
