English

Belarusian, Russian potash giants agree on volume of sales, prices

Belaruskali and Russia’s Uralkali have agreed on the volume of potash fertilizer sales and its prices for the period from 2013 through 2015, Prime Minister Mikhail Myasnikovich said in remarks broadcast by television channel Belarus One.

He said that the agreement was reached as a result of talks that Uralkali co-owner Suleiman Kerimov held with Belarusian government officials in Minsk on December 28.

State-owned Belaruskali and Uralkali export potash fertilizers through a joint trader, Belarusian Potash Company.

Mr. Myasnikovich stressed that the sides had managed to iron out all differences. According to him, the share of Belaruskali’s products in Belarusian Potash Company’s sales would amount to 48.3 percent in 2013, 49 percent in 2014 and 50 percent in 2015.

Mr. Myasnikovich said that the sides had also agreed on a formula to be used for calculating the prices of Belarusian and Russian potash fertilizers. Minsk wants Belaruskali’s granulated fertilizers, a product that is not made by Uralkali, to sell at a higher price than powdered fertilizers, he explained.

Mr. Myasnikovich shrugged off reports of plans to dissolve Belarusian Potash Company, saying that it would boost its sales in 2013.
“Belaruskali will not sell potash fertilizers. It will continue engaging in their production. This subject was also under consideration at the talks with the Russian side,” he said.

The average price of Belarusian potash fertilizers was $410 per ton in 2011 and reached $433 in the first 10 months of this year. Mr. Myasnikovich expressed hope that next year Belarusian Potash Company would restore its volume of sales and proceeds to the level of 2011.

Founded in 2005 by Belaruskali and Uralkali, Belarusian Potash Company is said to control more than 30 percent of the world potash market. A 50-percent stake in the company belongs to Uralkali, 45 percent to Belaruskali and five percent to Belarusian Railroads.

Earlier this week, Alyaksandr Lukashenka issued a presidential edict that authorizes him to allow companies other than BPC to export potash fertilizers made by Belaruskali. //BelaPAN