Ukraine strikes ‘Kremlin-linked’ fertiliser giant PhosAgro, FAO partner

 ROME - A Ukrainian drone strike hit the Apatit chemical plant in Russia’s Vologda region, setting fire to the facility, Ukrainian media said Tuesday. 

 The plant is owned by Russian fertilizer giant and FAO partner PhosAgro, and is one of the largest producers of phosphate fertilizers in Europe. 

 Ukrainian state-affiliated outlet United24 framed the strikes as part of an effort to target infrastructure linked to the Kremlin’s war efforts, suggesting some chemicals produced at the plant had potential military applications. 

 The U.S. has previously identified PhosAgro founder Andrey Guryev as a "close associate” of Vladimir Putin.  

 Both Guryev and his son became subject to Western sanctions in 2022 following Russia’s invasion of Ukraine, though the family continue to own just under 50% of the fertilizer giant.

 This has allowed PhosAgro to continue profiting from trade with Europe, thanks to a loophole that permits firms to operate freely in EU markets so long as sanctioned individuals hold less than half the company’s shares, according to the Russian Insider. 

 The sanctions also do not appear to have impacted PhosAgro’s close relationship with the FAO.  

 Just last December, the fertiliser company was awarded an 'FAO Technical Recognition Award’ by the organisation. 

 PhosAgro has donated over 5 million U.S. dollars to the Rome-based agency in recent years, with the two previously signing multiple cooperation agreements.

 FAO Director-General Qu Dongyu has faced criticism for accepting funding from the oligarch-founded fertilizer giant, with some FAO observers accusing him of having a sympathetic stance toward Russia’s invasion of Ukraine.