US Treasury Dept. recognizes EuroChem as crucial player in global food supply
Zug, Switzerland, August 3, 2022 — The United States Department of the Treasury has recognized the right of EuroChem Group, a leading global fertilizer producer and critical link in the world’s food supply, to continue to operate without limitations.
Swiss-based EuroChem Group is one of the world’s top-five crop nutrient producers by volume, and is not majority-owned or controlled by any sanctioned individual or entity.
“Thousands of farmers all over the world depend on us to supply them in a timely manner with the crop nutrients they need to get the most out of their land, so that they can feed their communities,” said Samir Brikho, EuroChem’s Executive Chairman.
“It is vital that we can maintain frictionless operations with all of our counterparties as we seek to help growers maximize their harvests,” he added.
The Office for Foreign Asset Control (OFAC), a division of the Treasury Department, announced in a statement this week that it “has not designated EuroChem Group AG, and, based on information available to OFAC, EuroChem Group AG is not owned 50% or more by blocked persons.”
Samir Brikho continued: “We call upon all stakeholders to heed the advice of the authorities and make all provisions necessary for the continued operations of all participants in the global food supply, the fertilizer companies included.”
The OFAC statement comes a little over a week after the European Commission vowed in its seventh package of sanctions that the food and fertilizer industry would be shielded from any negative impact.
However, while the EU, the United Nations and the United States have all announced that food security must be guaranteed in the face of an impending food crisis, the reality remains that many fertilizer companies, including EuroChem, continue to experience daily operational difficulties triggered by counterparties’ fear of violating sanctions against designated individuals even if they have no ownership or control over the firm.
Thus, the Treasury Department’s statement clarifies and reaffirms the non-sanctioned status of the company and its right to operate without limitations.
EuroChem is a leading global fertilizer producer, and one of only three companies worldwide with manufacturing capacity in all three primary nutrient groups: nitrogen, phosphates and potash. A vertically integrated company, EuroChem is expanding its mining, production and distribution capacities in key regions around the world. The company’s growth is primarily driven by the ramp-up of two large-scale potash projects and new state-of-the-art ammonia and urea facilities, and underpinned by an operational efficiency drive across the full value chain. The Group employs more than 27,000 people in 40 countries, and with a product reach of more than 100 countries. EuroChem is controlled by a trustee and no person subject to sanctions has ownership or control over the Group.