India to Set Up a Urea Plant in Russia Under a Joint Venture

08-Dec-2025 01:35 PM

New Delhi. Last week, a memorandum of understanding was signed between Russia’s firm Uralchem JSC and Indian companies—Indian Potash Limited (IPL), Rashtriya Chemicals and Fertilizers (RCF), and National Fertilizers Limited (NFL). Under this agreement, a urea plant with an annual production capacity of 2 million tonnes will be established in Russia. The plant will be constructed as a joint venture and is estimated to cost 1.20 billion USD (₹10,790 crore). The target is to make the plant operational by 2027–28, which will help increase the availability of urea for Indian farmers.

In the presence of the Indian Prime Minister and the President of Russia, the document exchange for the agreement took place on 5 December 2025 in New Delhi between the Indian ambassador to Russia and the Russian ambassador to India. On this occasion, the Indian Prime Minister stated that the growing cooperation between India and Russia in the agriculture and fertilizer sectors is extremely important for food security and will also ensure the welfare of farmers. Efforts will be made to keep this cooperation dynamic. Both countries will work together to increase urea production.

In this joint venture, the Russian company will hold a 50% stake, while the remaining 50% will be held by the Indian firms. This means that at least half of the urea produced in this plant will be allocated to India, and if Russia’s domestic requirement is lower, India may receive an even larger share.