Reliance on Russian fertilizers puts Brazil on alert

Potential secondary sanctions imposed by NATO, with strong support from the United States, may trigger a new crisis for the Brazilian agribusiness sector. The most critical scenario foresees tariffs of up to 100% on Russian products and penalties for countries maintaining trade relations with Moscow, including Brazil. The measure aims to increase pressure on the government of Vladimir Putin to cease the conflict with Ukraine. According to data from Itaú BBA, Brazil is highly dependent on Russia for the supply of fertilizers and fuels. These two products alone account for 84% of the total value of Brazilian imports from Russia. The possible imposition of trade barriers could generate a strong impact on agricultural production costs, compromising the sector's profitability. In 2024, Brazil imported $3.7 billion in fertilizers from Russia. The Russian origin accounted for 53% of the map, 40% of Potassium Chloride (KCl), and 20% of the Urea consumed domestically. Given this ...