OJSC PHOSAGRO - PhosAgro and Chemoproject Nitrogen sign agreement

For Immediate Release                                            14 August 2014


 PhosAgro and Chemoproject Nitrogen sign agreement for design engineering and
procurement of equipment for the construction of a new granulated urea unit in
                              the Vologda region

Vologda-PhosAgro (Moscow Exchange, LSE: PHOR), a leading global vertically
integrated phosphate-based fertilizer producer, and Chemoproject Nitrogen a.s.,
a leading global engineering company, have signed a contract for the design
engineering and procurement of equipment for the construction of a 500 ths
tonne/year granulated urea production unit at PhosAgro-Cherepovets in the
Vologda region.

The agreement was signed by PhosAgro CEO Andrey Guryev and Chairman of the
Board of Directors and CEO of Chemoproject Nitrogen a.s. Tomas Plachy, in the
presence of the Vologda region's interim governor Oleg Kuvshinnikov.

Urea and granulation technology will be licensed from Stamicarbon from the
Netherlands, the licensing and IP Center of Maire Tecnimont, which was the
licensor on the construction of the second urea production unit at
PhosAgro-Cherepovets, realised and commissioned by Chemoprojekt a.s. in 2012.
This will be the first time that Stamicarbon's Urea2000plusTM technology will
be used in combination with fluized bed granulation for producing granulated
urea in Russia.

The construction of the third urea production unit at PhosAgro-Cherepovets is
part of a comprehensive investment project to commission a new energy-efficient
760 ths tonnes/year ammonia plant in 2017 for the production and processing
mineral fertilizers. The project is an integral part of PhosAgro's long-term
modernisation strategy, which was developed under the leadership of the Gorny
National Mineral and Natural Resource University (St. Petersburg) and aims to
completely upgrade production capacities using the most advanced technology
available.

Commissioning the new urea unit will increase PhosAgro Group's overall urea
production capacity by 50%, and could make PhosAgro-Cherepovets the largest
single producer of urea in Russia.

Total investments in the construction of the new urea unit and production
infrastructure, which the company plans to finance through borrowing, are
estimated at RUB 7.8 billion. The project will utilise the most advanced
technology and modern equipment available, enabling it to deliver top
performance in the areas of energy efficiency, resource conservation,
operational efficiency, as well as ecological and industrial safety.

Construction and installation work will be carried out by local contractors as
well as contractors from other Russian regions. In total, more than 1,000
workers of various specialisations will be engaged in the project, and the urea
production will create approximately 90 new highly-skilled jobs. Employees on
the production side will receive training onsite at the existing urea plant
using Urea2000plusTM technology.

In addition to increased urea production, for which there is significant market
demand, the project is also expected to increase tax payments into the regional
budget, while providing a boost to the development of key infrastructure in the
region, while also supporting residential property development for employees at
PhosAgro's Cherepovets facilities.

The project will also bring significant environmental benefits. Launching new
urea production facilities will help to decrease carbon dioxide emissions.
Carbon dioxide will be used as a raw material in the production process, which
is very important for the industrial city of Cherepovets.

In order to train all staff properly and to equip them to work at the high-tech
facility, as well as at other divisions of PhosAgro-Cherepovets, PhosAgro and
the local Vologda Government have jointly lead on the opening of a dedicated
technical college in Cherepovets, while at the Cherepovets State University a
new department has been created focused on the technology of non-organic
substances and fertilizers

PhosAgro CEO Andrey Guryev said: "Realising this complex and high-priority
project to build a modern ammonia production facility to produce and further
process into mineral fertilizers, including the new urea plant, will help us to
strengthen further our position in the global fertilizer market and to expand
our product range. The new urea plant will help to create new highly-skilled
jobs, while also increasing our operating and financial efficiency. The project
will increase our fertilizer production capacity by 25% by 2017."

Vologda Governor Oleg Kuvshinnikov added: "Not only is PhosAgro one of the
world's largest fertilizer producers, continually seeking to develop its
production capacity, but it is also a very socially responsible company, the
largest taxpayer in the Vologda region and a great supporter of strategically
important initiatives for the region. It is particularly important for us that
the chemical production complex in Cherepovets was selected as the optimum
platform for this ambitious project. This project will also support the
development of related industries, create new jobs and increase tax
contributions to the local budget, which in turn will allow for new important
programmes to be introduced in the fields of sport, medicine and healthcare. We
are ready to provide all necessary support for this project."

Tomas Plachy, Chemoprojeсt Nitrogen a.s. CEO, remarked: "We are delighted to
continue our cooperation with PhosAgro, a company that is always looking to
apply best international practice and knowhow in design engineering, and to use
the latest technology in the fertilizer production process. Our key competitive
advantages include our long-standing cooperation via EPC contracts with
Stamicarbon, our substantial experience in successfully completing similar
projects, as well as our strong local Russian market knowledge, which we view
as a strategically important market."

For further information please contact:

OJSC PhosAgro
Irina Evstigneeva, Head of Corporate Finance and Investor Relations
[e-mail]
[phone]

Timur Belov, Press Officer
[phone]

EM
Sam VanDerlip
[e-mail]
[phone]
[phone]


Notes to Editors

PhosAgro is one of the leading global vertically integrated phosphate-based
fertilizer producers. The Company focuses on the production of phosphate-based
fertilizers, feed phosphate and high-grade phosphate rock (P2O5 content of not
less than 39%), as well as ammonia and nitrogen-based fertilizers.

The Company is the largest phosphate-based fertilizer producer in Europe, the
largest producer of high-grade phosphate rock worldwide and the second largest
MAP/DAP producer in the world (excluding China), according to Fertecon.
PhosAgro is also one of the leading producers of feed phosphates (MCP) in
Europe, and the only producer in Russia.

PhosAgro has 2.1 billion tonnes of resources (according to JORC) of high
quality apatite-nepheline ore. The Company's mines and phosphate rock
production facilities are located in the mountainous areas of the Kola
Peninsula in the Murmansk region of northwest Russia, whereas its fertilizer
and feed phosphate production assets are located near the city of Cherepovets
in the Vologda region and near the city of Balakovo in the Saratov region of
southwest part of European Russia.

PhosAgro's 2013 IFRS revenue was over USD 3.3 bln and EBITDA was USD 752 mln.
The Сompany's net debt/EBITDA ratio was 1.8 at 31 December 2013.

For further information on PhosAgro please visit: www.PhosAgro.com

Chemoprojeсt Nitrogen a.s. is a Czech company providing services in design,
engineering, ensuring the supply of equipment and materials, construction and
installation work, field supervision, contract supervision and commissioning
works, the creation of industrial production associated with investments in the
nitrogen industry, the production of nitric acid and ammonium nitrate
production and granulation of urea, compound fertilizer production, ammonia and
aniline.

In July 2014 the well-known engineering company Carsale Group, which has
implemented numerous reconstruction projects on existing ammonia plants in the
Russian Federation, became a major shareholder in Chemoproject Nitrogen.

Stamicarbon B.V.

Stamicarbon, the licensing and IP Center of Maire Tecnimont, is the global
market leader in licensing of urea technology and services with more than 50%
market share in synthesis and 32% market share in urea granulation technology.
Stamicarbon has more than 65 years' experience in licensing its urea technology
and services, delivering optimum environmental performance, safety, reliability
and productivity at the lowest investment level. Over 260 urea plants are using
its technology. In addition, it has completed over 90 revamp projects in
Stamicarbon and non-Stamicarbon plants. Since 1947, Stamicarbon has been the
world's leading authority and innovator in the field of urea in close
co-operation with research institutes, suppliers and customers. Stamicarbon has
offices in Sittard (The Netherlands), Beijing (China) and Moscow (Russia). For
further information: www.stamicarbon.com.

The urea plant will utilize Stamicarbon's state-of-the-art Urea 2000Plus® Pool
Reactor technology. The granulation plant is based on Stamicarbon's latest
fluid bed granulation technology. Both plants will have a capacity of 1500 mtpd
each.

Granulated urea has a high density and a low dissolution rate, which increases
efficiency when applied to soil, increasing its ease of use and facilitating
high yields. Granulated urea can be used in animal husbandry as a feed
additive, as well as in the production of resins that are widely used as
adhesives in the production of wood-fiber boards and furniture. In the
petroleum industry it is used for purification of oils and motor fuels from
paraffin-release soft paraffin feedstock to produce a protein-vitamin
preparations, fatty alcohols and acids, detergents. Urea is also used for
treatment of nitrogen oxides from the flue gas of thermal power plants,
boilers, incinerators, emissions of trucks for compliance with the emission
standards of Euro 5 and 6. In medicine, pure urea is used as an antitumor agent
for the prevention and reduction of cerebral edema, as well as for the
production of sleeping medicines, such as veronal, luminal, and bromural. Urea
is registered as a food additive E927b and is used for the manufacturing of
chewing gum