Tuesday, 02 January 2024 12:17 GMT

Russia Loses Ability To Produce One Of Most Important Chemicals For Industry - Intel


(MENAFN- UkrinForm) This was reported by the Foreign Intelligence Service of Ukrain, according to Ukrinform.

It has been established that the Russian authorities have banned the export of technical sulfur until the end of the year in an attempt to maintain fertilizer production and avoid a shortage of critical raw materials.

The ban applies to all basic forms of this substance: liquid, granular, and lump.

“Formally, the decision is explained by 'food security,' but it indicates deepening problems in the Russian chemical industry,” the intelligence service notes.

The agency notes that Russia is one of the world's largest producers and exporters of sulfur, but even with this status, production volumes have fallen by 11.2% since the beginning of the year, to 3.17 million tons. This was due to a reduction in the processing of oil and gas, from which most technical sulfur is obtained.

Despite significant reserves and production capacity, Russia is forced to import raw materials.

According to intelligence reports, about 35,000 tons were purchased in October. The purchase price was USD 390 per ton. This indicates that the domestic market is unable to meet demand, and producers are facing rising costs due to higher domestic prices.

Read also: Ukrainian intel ligence strikes Russia's Rubicon UAV unit in Avdiivka

The new restrictions may increase pressure on Russian chemists and traders, who will lose part of their foreign exchange earnings.

The Russian government hopes to stabilize domestic supply, but given current trends, the aggressor country's industry risks finding itself in a situation where raw material shortages become systemic and production efficiency declines even further.

As reported by Ukrinform, the head of the Security Service of Ukraine announced the successful destruction of 160 Russian oil production and refining facilities this year.

Photo: freepik

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