Grupa Azoty (Poland) shuts down its factory due to high gas prices

Grupa Azoty (Poland) shuts down its factory due to high gas prices

Today Grupa Azoty (Poland) has completely stopped the production of nitrogen fertilizers. The reason for this was the increase in the prices of natural gas, which is used as a raw material in their production.

“We are faced with historically high natural gas prices in the European market. In the press release of Grupa Azoty, it was stated that in the last six months the price offer has increased from 72 Euros per 1 MWh on 22 February to 276 Euros on 22 August 2022.

In April, Gazprom stopped natural gas exports to Poland due to its refusal to pay for the product in Russian currency. In May, the Polish government terminated the contract with the Russian company, which should be valid until the end of 2022.

Western sanctions against Russia led to a sharp increase in natural gas prices in the European market. The actions of the Polish authorities, which really brought their industries to the brink of destruction, also contributed. “The suspension of Grupa Azoty is only the beginning of this process, which could have far worse consequences.”

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