EuroChem at a glance

We produce nitrogen fertilizers at Novomoskovskiy Azot and Nevinnomysskiy Azot, which can produce a combined 2.8 MMT of ammonia per year. EuroChem is a leading low-cost producer because we have to access inexpensive raw materials and continue investment in efficiency and product flexibility.

Organic synthesis products (primarily more complex processing of nitrogen products) are used as raw materials in the chemical, construction and other industries. Our main products are methanol from Novomoskovskiy Azot and acetic acid from Nevinnomysskiy Azot.

EuroChem is the only producer of acetic acid and granulated urea in Russia.

Revenue contribution to Group 2009

Segment revenue 2007-2009 (RUR bn)
(including sales to other segments)

World ranking by nutrient capacity

6

Our phosphate segment is fully integrated: apatite from the Kovdorskiy GOK mining facility supplies our three phosphate plants, Lifosa, Phosphorit and EuroChem-BMU, which can produce a combined 2.2 MMT of MAP and DAP per year.

In addition to supplying nearly all the apatite for our phosphor plants, Kovdorskiy GOK produces up to 5.7 MMT of iron ore annually, and is the only place in the world where the mineral baddeleyite is produced (up to 8.9 KMT per year).

Revenue contribution to Group 2009

Segment revenue 2007-2009 (RUR bn)
(including sales to other segments)

World ranking by nutrient capacity

5

With the commissioning of our potash mine and production facilities, planned for 2013, EuroChem will become one of only three major global fertilizer producers operating in all three segments.

Gremyachinskoe deposit (Volgograd)

• License acquired in 2005 at state auction
• Purchase price of RUR 3.0bn
• Reserves and resources: 1.9bn tonnes*
• Depth of 1,000-1,200 meters
• High nutrient content: KCI average content 30.8% (in the range of 23.4-40.9%); NaCI content 57-61%; MgCl content 0.10-0.15%; CaS0₄ content 4-5%
• Phase I (capacity of 2.3 MMT p.a.): production to start in 2013
• Phase II (capacity doubled to 4.6 MMT p.a.): production to start in 2015
• RUR 13.7bn expenditure to date (including license cost)

Verkhnekamskoe deposit (Perm)

• License acquired in 2008 at state auction
• Purchase price of RUR 4.1bn
• Reserves: 1.5bn tonnes*
• Depth of ca. 500 meters
• KCl content ranges from 24% to 29%
• Phase I: capacity of 1.7 MMT p.a.
• Phase II: capacity increased by 1.4 MMT p.a.
for total of 3.1 MMT p.a.

* A+B+C1+C2+P1 according to Russian reserves classification.

We sell our own products through a distribution network of 39 outlets in Russia and Ukraine, of which eight are owned by us. Our approach is to “sell yield, not fertilizers” offering clients a range of agrochemical advisory services and related products.

Revenue contribution to Group 2009

Segment revenue (RUR m)
(including sales to other segments)

EBITDA

RUR 22.4m