No impact from new potash export duties - Uralkali

LONDON (ICIS news)--Russian potash producer Uralkali does not expect any materially adverse affects from the Moscow's decision to introduce a 5% export duty on potash exports, the company said in a statement on Wednesday.

“Uralkali does not expect the export duties resolution to have a materially adverse impact on its business, prospects, financial condition or strategy,” the statement said.

However, Uralkali added that it did expect the introduction of the duties to “be an additional factor affecting prices of potassium chloride [MOP] in the international market”.

Russia is introducing duties on potash exports destined for countries outside of the members of the Commonwealth of Independent States (CIS) customs union with the Russian Federation.

The duty applicable to Uralkali’s potash is 5% of the declared customs value, which Uralkali expects to be charged on almost all of its exports.

The government resolution will come into affect one month after its official publication and will remain valid until 30 April 2009.

The move comes at a time when international potash prices are already at record highs due to short supply and strong demand.