Uralchem signs memorandum with Indian cos to build urea plant in Russia

MOSCOW. Dec 5 (Interfax) - Russia's Uralchem has signed a memorandum of understanding with the Indian companies Rashtriya Chemicals and Fertilisers, India Potash and National Fertilizers.

The agreement was signed during Russian President Vladimir Putin's visit to New Delhi.

"Our cooperation in agriculture and fertilizers is vital for food security and the well-being of our farmers. I am very pleased that both countries will continue efforts to jointly produce urea," Indian Prime Minister Narendra Modi said following talks with the Russian president.

Reuters reported on Thursday, quoting sources, that Uralchem planned to enter into an agreement with Indian partners to establish a joint venture to produce urea in Russia. It said India Potash and Rashtriya Chemicals and Fertilisers would each receive a 22.5% stake in the joint venture, with National Fertilizers holding the remaining 5%. Uralchem will own the remaining 50% and lead the project.

According to the InfoTEK portal, the project involves building a urea plant in Taman in the Krasnodar territory near the ammonia and fertilizer transshipment terminal under construction at Togliattiazot .

Uralchem could not be reached for comment.