PRESS-RELEASE

URALCHEM announces production results for the first 9 months of 2009

Moscow, Russia – 11 November, 2009 – URALCHEM, OJSC, (“the Company” or “URALCHEM”), one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS, reports its production results for the first 9 months of 2009.

According to the Company’s production results for the first 9 months of 2009, URALCHEM produced 3, 301, 863 tonnes of commercial output, which amounted to a 7% decrease from the same period in 2008 (including Voskresensk Mineral Fertilizers, OJSC).

Production of Key Commercial Output for the first 9 months of 2009/2008 (tonnes)

Dmitry Osipov, Chief Executive Officer of URALCHEM, commented: “Reduced production levels for some of our fertilizer products were a result of the global financial crisis. The mineral fertilizer industry currently finds itself in a difficult situation. Prices are considerably lower than they were last year. For nitrogen fertilizers, prices have decreased by two times, while phosphate fertilizers have fallen by four times in comparison with 2008 peaks. However, we expect to see relative growth starting from February 2010, as the sowing season begins. In the first 9 months of 2009 URALCHEM produced the maximum output that could be sold. Thus, the production of ammonium nitrate and its derivatives increased by 6% compared to the first 9 months of 2008 and production of urea increased by 25%. Commercial ammonia production was scaled back by 23% compared to the first 9 months of 2008 mainly as a result of the product being further processed into dry fertilizer.

The sharp decrease in DAP and MAP production in the first 9 months of 2009 was the result of ongoing difficulties with supplies of apatite concentrate – our key phosphate fertilizer feedstock.

We have been able to overcome these difficulties by carrying out modernization and launching production of complex NPK fertilizers at Voskresensk Mineral Fertilizers. These steps have strengthened URALCHEM’s position in the complex fertilizers market. Through these steps, complex fertilizer production in the first 9 months of 2009 has increased by 28% compared to the same period of last year”.

Public Relations Department
URALCHEM
tel. +7 (495) 721 89 89
pr@uralchem.com
www.uralchem.com

URALCHEM is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS with production capacities of over 2.7 million tonnes of ammonium nitrate, 2 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilizers and 0.5 million tonnes of urea. URALCHEM is the second largest ammonium nitrate producer in the world and number one in Russia. URALCHEM’s key production assets include Kirovo-Chepetsk Chemical Works, OJSC in Kirovo-Chepetsk, Kirov region; Azot, OJSC in Berezniki, Perm region; Voskresensk Mineral Fertilizers, OJSC in Voskresensk, Moscow region. 

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.