Sanctions against Russia threaten fertilizer security

The possibility of secondary sanctions on countries maintaining trade relations with Russia has generated growing concern in the national agricultural sector. Anderson Nacaxe, CEO of Oken.Finance, warns that Brazil imports around 86% of synthetic fertilizers used in crops, with almost one-third of these imports coming from Russia, especially Nitrogen and Potassium sources, which are fundamental for crops like soybeans and corn. The sanctions, advocated by leaders such as the new NATO secretary, Mark Rutte, and North American politicians, could directly impact Brazil, China, and India, with tariffs reaching up to 100% on Russian products. According to Nacaxe, the impact would be devastating for Brazilian agribusiness, since in some states fertilizers represent more than 20% of total production costs. The scarcity would raise prices, reduce usage, compromise productivity, and affect exports. To mitigate risks, the executive points to three paths. The first is supplier ...