Belarus, Russia potash joint venture awaits policy agreement

28 August 2012 16:53  [Source: ICIS news]

MOSCOW (ICIS)--Belarus deputy Prime Minister Vladimir Semashko on Tuesday said new potash joint venture Soyuzkaliy will only be able to start operations once Belarus and Russia agree on potash sales volumes and pricing policies.

According to an announcement from the Belarus government's press service, Semashko said both sides were yet to agree on potash export price formulae.

In May 2012, Belarus and Russia decided to create the new joint venture, Soyuzkaliy, on a parity basis that would replace the Belarusian Potash Company (BPC). The new entity would be registered in Switzerland and expected to start operations in February 2013.

Created in 2005, Belarus-registered BPC is now co-owned by Russia-based producer Uralkali (50%), Belarus potash producer Belaruskaliy (45%) and Belarus Railways (5%). In 2011, the BPC exported 12.9m tonnes of potash, including 7.7m tonnes from Belaruskaliy and 5.2m tonnes from Uralkali.

Meanwhile, Belaruskaliy on Tuesday indicated plans to sustain its export sales at $3bn (€2.4bn) in 2012.

According to Belarus statistical agency Belstat, Belaruskaliy exported 1.99m tonnes of potash in the January-June period, totalling around $1.48bn, which is down 18.3% year on year.

($1 = €0.80)

By: Sergei Blagov
+44 20 8652 3214

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