Russian border closure and tariff hike force Finnish fertilizer plant to shut down

A Finnish fertilizer company in Tohmajärvi will suspend operations after Russia abruptly closed the Niirala–Värtsilä rail crossing and raised transport tariffs eightfold, Yle reports.

Cemagro, which employs about 10 workers at its Niirala plant, will furlough all staff. The company’s CEO, Juhani Muhonen, said the shutdown was inevitable after Russia cut off rail freight and imposed the new tariffs overnight.

Some 10,000 tons of raw materials remain stranded on the Russian side, Muhonen added. The company had been importing fertilizer components from Russia and Uzbekistan under exemptions, as such shipments were not subject to EU sanctions due to their role in global food security.

Rail operator Fox Rail, which handled the crossings, will also cease work on the route. VR had already withdrawn from cross-border freight after Russia’s invasion of Ukraine, and each shipment required special permits.

Muhonen said neither Finnish authorities nor the company’s partners in Russia and Uzbekistan had prior notice of the decision. The Niirala plant, located directly beside the eastern border, received about one train per week via a direct rail spur from Russia.