Russian tariffs slash fertilizer rail shipments to Finland

Russian rail tariff hikes have all but halted fertilizer shipments from Russia to Finland, with volumes collapsing from around 250,000 tonnes per month earlier this year to roughly 10,000 tonnes by 21 July, according to Finnish Customs.

Mikko Grönberg, head of customs enforcement, said the impact has been most severe on fertilizers moving through the Vainikkala border crossing in Lappeenranta and onward to the ports of Kotka-Hamina for global export. The new, multiplied tariffs took effect at the start of July.

Grönberg noted it remains unclear whether fertilizer shipments will cease entirely, as the decision now hinges on commercial viability for importing firms. Fertilog, a consortium handling storage and shipping of mineral fertilizers in Finland, stated immediately after Russia’s decision that the new costs would make transport unprofitable.

Ammonia and nickel ore shipments continue through Vainikkala, with about one freight train arriving daily in July, down from roughly two per day a year ago. Russia has exempted these commodities from the tariff hikes until at least the end of October.

The Niirala crossing in North Karelia, previously used under special permits primarily for ammonia transport, has seen shipments stop entirely following the tariff decision.

Finnish Customs has furloughed nearly 100 staff on the eastern border due to reduced workload. Earlier this year, Finland’s imports from Russia grew in value, driven largely by nickel, though ammonia accounted for the highest volumes.

Grönberg said the latest EU sanctions package, approved this week, is unlikely to have a major additional impact on Finland-Russia trade, as ammonia and nickel ore remain exempt. Existing sanctions already cover most trade, he added.