PhosAgro Board Approves Framework of Strategy to 2020

For Immediate Release 19 May 2014 PhosAgroBoard Approves Framework of Strategy to 2020 Moscow - PhosAgro ("the Company") (Moscow Exchange, LSE: PHOR), one of theworld's leading vertically integrated phosphate-based fertilizer producers,announces that its Board of Directors has today approved the framework of theCompany's development strategy through 2020. The strategy is designed to strengthen PhosAgro's position as one of theworld's leading phosphate-based fertilizer producers, on building shareholdervalue, and on achieving top rankings in the industry for labour efficiency,production and sales efficiency, as well as environmental practices. Some of the key areas of strategic focus include: * Further modernisation and increasing of production flexibility at the Company's mineral fertiliser production lines, which will allow PhosAgro to maintain a competitive advantage by enabling it to quickly adapt its product mix in response to changing demand using the same facilities to produce different types of fertilizers; * Heightened self-sufficiency in key inputs (including ammonia, electricity and sulphuric acid); * Increased depth of processing of apatite ore and greater internal processing of phosphate rock; * Continued consolidation of PhosAgro's subsidiaries; * Widening of the Company's product line to include new grades of fertilizers, technical phosphates and other products; PhosAgro's main capital expenditure project during the next three years isconstruction of the high-tech ammonia production line with a capacity of 760ths tonnes per year at PhosAgro-Cherepovets (over RUB 25 billion includinginfrastructure). Other investment projects involving the construction of newproduction lines that process ammonia will be announced at PhosAgro's CapitalMarkets Day, which is currently planned for September of this year. At today's meeting, the Board of Directors also reviewed PhosAgro'sconsolidated financial statements for Q1 2014 and approved the Company'sframework social policy for 2014. For further information please contact: OJSC PhosAgro Irina Evstigneeva, Head of Corporate Finance and Investor Relationsir@phosagro.ru+7 495 231 3115 Timur Belov, Press Officer+7 495 232 9689 EM Sam VanDerlipvanderlip@em-comms.com+44 7554 993 032+7 916 306 6112 Notes to Editors PhosAgro is one of the leading global vertically integrated phosphate-basedfertilizer producers. The Company focuses on the production of phosphate-basedfertilizers, feed phosphate and high-grade phosphate rock (P2O5 content of notless than 39%), as well as ammonia and nitrogen-based fertilizers. The Company is the largest phosphate-based fertilizer producer in Europe, thelargest producer of high-grade phosphate rock worldwide and the second largestMAP/DAP producer in the world (excluding China), according to Fertecon.PhosAgro is also one of the leading producers of feed phosphates (MCP) inEurope, and the only producer in Russia. PhosAgro has 2.1 billion tonnes of resources (according to JORC) of highquality apatite-nepheline ore. The Company's mines and phosphate rockproduction facilities are located in the mountainous areas of the KolaPeninsula in the Murmansk region of northwest Russia, whereas its fertilizerand feed phosphate production assets are located near the city of Cherepovetsin the Vologda region and near the city of Balakovo in the Saratov region ofsouthwest 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.

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