Supply chain and procurement

GRI: 103, 102-9, 204-1

Supply chain


PhosAgro places special emphasis on making its procurement activities transparent and ensuring fair competition and equal conditions for all suppliers of equipment, materials and services. We seek to build strong, trustful and mutually beneficial relationships with our partners in compliance with the applicable laws, regulations, industry standards, contractual and other obligations.

Procurement principles

As set out in the relevant policy of Apatit, the Company’s procurement activities rely on the following principles:

  • Be legitimate, competitive, and transparent
  • Factor in the requirements for specifications, quality, customer service, delivery terms, reliability, eco-friendliness and total cost of ownership, along with legal and social matters pertaining to the equipment and materials sourced
  • Use the best-fitting, sustainable business solutions
  • Protect the Company’s reputation
  • Comply with the Company’s existing procedures and best practices

Committed to fighting corruption, PhosAgro adheres to the Anti-Corruption Charter of the Russian Business. We are making reasonable efforts to minimise risks of doing business with partners that might be involved in fraud and/or corruption.

In furtherance of our Anti-Corruption Policy, we establish and maintain business relationships with companies that operate in a bona fide manner, care about their own reputation, show commitment to high ethical standards, combat corruption, and take part in joint anti-corruption initiatives in accordance with article 13.3 of the Federal Law On Combating Corruption.

In line with the Company's approved Code of Ethics published at, the Company may refuse to cooperate with suppliers or business partners discriminating their own or subcontractors’ employees or using forced labour.

Procurement methods

Corporate procurement is a competitive process, with a dedicated commission put in charge of organising tenders for equipment, materials, petroleum products and services. For this purpose, the Group uses an online bidding platform, which meets all applicable requirements set by the Russian laws. We arrange for and hold tenders with a view to achieving a greater procurement efficiency and transparency, creating a level playing field for all prospective contractors, setting uniform requirements, and ensuring fair bid evaluation.

Service tenders in 2019
Tenders in 2019 Apatit Balakovo branch of Apatit Volkhov branch of Apatit Kirovsk branch of Apatit
Corporate and other services No. of tenders 47 4 2 20
Amount, RUB mln 473.0 63.0 97.0 112.0
Transportation, incl. rail No. of tenders 22 9 5 8
Amount, RUB mln 1,208.0 83.0 122.0 197.0
Maintenance and repairs No. of tenders 63 47 39 106
Amount, RUB mln 3,201.0 485.0 227.6 1,796.0
Capital construction No. of tenders 85 78 51 160
Amount, RUB mln 13,132.0 775.0 5,768.0 3,218.0
TOTAL No. of tenders 217 138 97 294
Amount, RUB mln 18,014.0 1,406.0 6,214.6 5,323.0
Procurement from local businessesLocal businesses – organisations and individuals that are registered in the same constituent entity of the Russian Federation (significant location of operation) as the production facility that is the recipient of the procurement. The Company’s significant locations of operation are Murmansk, Vologda, Leningrad and Saratov regions. in 2019, RUB mln
Company Other suppliers Local suppliers total
Apatit 37,101.5 14,871.3 51,972.8
Balakovo branch of Apatit 10,049.8 1,166.3 11,216.1
Volkhov branch of Apatit 4,393.6 1,238.5 5,632.2
Kirovsk branch of Apatit 19,950.4 1,429.8 21,380.2
Total 71,495.5 18,705.8 90,201.3
SME procurement in 2019, RUB mln
Company SME procurement, RUB mln Other suppliers total
Apatit 19,783.2 32,189.6 51,972.8
Balakovo branch of Apatit 3,120.3 8,095.7 11,216.1
Volkhov branch of Apatit 1,715.6 3,916.6 5,632.2
Kirovsk branch of Apatit 8,094.3 13,285.9 21,380.2
Total 32,713.4 57,487.9 90,201.3
Foreign vs domestic contracts in 2019
Company Foreign Domestic total
Apatit 1,925.1 50,047.7 51,972.8
Balakovo branch of Apatit 255.2 10,960.9 11,216.1
Volkhov branch of Apatit 218.6 5,413.6 5,632.2
Kirovsk branch of Apatit 1,421.7 19,958.5 21,380.2
Total 3,820.6 86,380.7 90,201.3