OJSC PHOSAGRO - PhosAgro Signs Contract for New Ammonium Sulphate Line

For Immediate Release                                          08 December 2014

PhosAgro Signs Contract for Ammonium Sulphate Production Line with GEA Messo

Moscow - PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR),
one of the world's leading vertically integrated phosphate-based fertilizer
producers, has signed a contract for the design, delivery and assembly of
equipment for a new ammonium sulphate production line with a capacity of 300
ths tonnes per year at PhosAgro-Cherepovets with the German company GEA Messo
P.T.* PhosAgro subsidiary Mining and Chemical Engineering will do initial
engineering and design work for the new production capacity.

This project will use the best available technologies and modern equipment,
helping it to achieve high levels of energy, resource and labour efficiency, as
well as environmental and industrial safety.

GEA Messo P.T. Managing Director Reinhard Scholz said: "The ammonium sulphate
production line that will be built in Cherepovets uses a crystallisation
process and will be the largest individual capacity in the world. This unique
production facility will be designed with careful consideration for all
environmental requirements. It is a completely closed-cycled production
process, meaning it will not produce any wastewater."

Ammonium sulphate is an important component of NPK and NPKS fertilizers,
including for niche products sold to premium markets. PhosAgro is currently the
largest consumer of ammonium sulphate in Russia. The Company currently
purchases the product from various chemical and metallurgical plants. The new
ammonium sulphate production line will utilise sulphuric acid and ammonia
produced at PhosAgro-Cherepovets.

PhosAgro CEO Andrey Guryev said: "The new ammonium sulphate production line
will improve our resource security by removing risks related to the supply of
the chemical components that our production facilities require for
manufacturing complex fertilizers, especially given our growth plans. Our own
supply of high-quality ammonium sulphate will be sufficient to cover all of our
internal requirements."

The new production facility is due to be commissioned in 2017. Total
investments, including project engineering work, delivery and assembly, are
expected to amount to over RUB 2.7 billion. PhosAgro plans to finance the
project with its own funds and through borrowings. In parallel to the
construction, staff training and education courses will start. The new facility
will create 30 new jobs.

Construction of the new ammonium sulphate line is part of PhosAgro's strategy
to 2020, which includes development of the Company's resource base and
processing facilities. Under PhosAgro's strategy to 2020, PhosAgro-Cherepovets
will gain a new 760 ths tonne per year ammonia production facility, a new 500
ths tonne per year granulated urea line and the new 300 ths tonne per year
ammonium sulphate production, as well as expanded complex fertilizer
capacities. The Company plans investments of over USD 1,072 million into
developing its chemical production capacities.

*GEA Messo P.T. is one of the world's leading producers of crystallisation
equipment for the chemicals sector, including the fertilizer industry, and is a
developer and manufacturer of chemical equipment.

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