The Russia – Africa economic summit: URALCHEM reports the results

During the Russia – Africa economic summit
on the 23-25 of October, 2019, negotiations were held by African leaders and
top management of URALCHEM company, Dmitry Mazepin and Dmitry Konyaev. The
summit, which took place in the Russian city of Sochi, resulted in signing a
Memorandum of Understanding with Opaia Group.

The agreement signed by the two companies
enabled the creation of a production complex in Angola for manufacturing urea
and joint ammonia, its capacity being over 1.2 million tons and the total
investment figures estimated to be over $1 billion. The production is due to
start in three years – in 2023. 

During the forum, Dmitry Mazepin managed to
collaborate with leaders of a number of African countries and to discuss the
terms of their future collaboration with the leading Russian fertilizers
manufacturer.  

Partnership with Mozambique appears to be
highly profitable for URALCHEM, particularly because of the port of Beira, the
transport junction which can enable the enterprise to supply the mineral
fertilizers it manufactures to Zambia and Zimbabwe. Dmitry Mazepin and the
Mozambique leader, President Filipe Jacinto Nyusi, reached an agreement
concerning the prospects of URALCHEM’s deliveries to Mozambique’s domestic
market. 

The discussion with Emmerson Mnangagwa,
President of Zimbabwe, had to do with the important issue of the Chemplex group
privatization, and URALCHEM company’s role in it, which was confirmed during
these talks. Zimbabwean authorities reported significant lack of funding and
technological deficit, which had been preventing the plant from effective and
efficient functioning. The country sees Dmitry Mazepin’s enterprise as a
prospective investor, which, in its turn, has already shipped a considerable
amount of fertilizers to the country, their estimated worth being approximately
$20 million.   

Another African country interested in
collaboration with the prosperous Russian enterprise is Kenya. Dmitry Mazepin
held successful negotiations with the Kenyan President, Uhuru Muigai Kenyatta,
on the subject of developing mining projects and building a port in Kenya.

Leaders of the two African countries, the
Tongolese Republic and the Republic of Ethiopia, also met with Dmitry Mazepin,
during the Russia – Africa Economic Summit in October. Their aim was to discuss
points of cooperation, which appear to be beneficial for both the Russian
company and the developing African countries.

Chairman of URALCHEM, Dmitry Mazepin,
summarized the results of the summit:

“We could not miss such an important event
for our country. We have been supplying our products to Angola, Kenya, Zambia
and Zimbabwe for some time, and Mozambique is the next in the line. It is a
pleasure to observe how African countries are taking steps to cooperate with the
Russian businesses. We definitely see this collaboration as a crucial business
direction for the next 2-3 decades”.

Dmitry Konyaev, URALCHEM’s Deputy Chairman,
particularly pointed out that the Memorandum, which they managed to sign with
the Opaia Group, was a vital step towards the development of the agricultural
sector in Angola, on the one hand, and a profitable initiative for the holding
willing to undertake the active supply of the fertilizers to the country.