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| OSTCHEM |
OSTCHEM Boosts Fertilizer Output Despite Wartime Production Disruptions
Ukraine's top nitrogen producer increases Q1 2025 output by 5.3% year-on-year, pivots to energy independence.
OSTCHEM, the nitrogen holding of Group DF, increased mineral fertilizer production by 5.3% y/y in the first quarter of 2025, reaching 529.3 thousand tons, despite wartime disruptions and emergency shutdowns at its plants.
Cherkassy Azot produced 394.8 kt, while Rivne Azot contributed 134.4 kt, according to figures reported to GMK Center.
The product mix shifted in response to changing domestic demand and import dynamics. Ammonium nitrate output fell from 246 kt to 226.5 kt, and urea production declined from 123.5 kt to 116.7 kt. However, UAN (urea ammonium nitrate) output surged, rising from 123.8 kt to 162.2 kt. Rivne Azot alone accounted for 15.8 kt, up from 10.8 kt in Q1 2024.
OSTCHEM faced serious operational challenges due to drone incursions and damage to gas and energy infrastructure in Cherkasy and Rivne. “This was the most difficult season in our history,” said Oleg Arestarkhov, Head of Corporate Communications at Group DF. “We will fulfill all fertilizer deliveries, no matter what it takes.”
In response, OSTCHEM revised its 2025 strategy, prioritizing energy independence to reduce exposure to volatile electricity prices and infrastructure risks. The company is actively investing in internal power generation and efficiency upgrades to stabilize production chains.
In 2024, OSTCHEM saw an overall production decline of 13%. Cherkassy Azot maintained output at 1.4 million tons, while Rivne Azot dropped 22% to 407 kt. The group also includes Severodonetsk Azot and Stirol, both located in occupied territories and currently non-operational.
As one of Ukraine’s key fertilizer suppliers, OSTCHEM’s recovery and resilience are critical for agricultural stability and strategic self-sufficiency amid ongoing geopolitical uncertainty.
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