Fertiliser prices set to rise after Russia hikes rail tariffs

Fertiliser shipments from Russia to Finland by rail will stop after Moscow raised rail tariffs eightfold, a move expected to push up prices for Finnish farmers before autumn.

Jyrki Niemi, research professor at the Natural Resources Institute Finland, said the decision will affect both pricing and availability in the coming months, as much of the fertiliser for the next growing season is purchased in late summer and early autumn.

Russia’s tariff hike is a countermeasure to the EU’s recent doubling of import duties on Russian and Belarusian goods. Professor Veli-Pekka Tynkkynen, an expert on Russian environmental policy, said the timing was deliberate to maximise shock, coinciding with the start of July when Russia is also closing border crossings with Finland.

“Finnish farmers begin preparing for the next year in early July. The Russians know the market situation in Finland and when prices are set,” Tynkkynen said.

Juha Wikström, a farmer in Särkisalo, has already secured fertiliser for this year and part of next year but still needs more. He said rising costs, without corresponding increases in product prices, put pressure on producers.

“If fertiliser supplies run short, I’d have to consider which crops to prioritise or even leave some fields fallow,” Wikström said.

Russia was once a major supplier of nitrogen fertiliser and raw materials to Finland and the EU, but imports have dropped sharply since 2022 due to the war in Ukraine, EU sanctions, and supply chain shifts. Most of Finland’s fertiliser now comes from European producers like Norway, Sweden, Lithuania, and Poland, with shorter transport routes and lower costs.

Tynkkynen said Russia’s goal is to halt fertiliser exports entirely, as the new tariffs make trade unprofitable.