Belaruskali, Uralkali agree on volume of sale, price for potash fertilizers in 2013-2015

MINSK, 29 December (BelTA) - Belaruskali and Uralkali agreed on the volume of sale and price for potash fertilizers in 2013-2015. The agreement was reached during the talks with shareholder of OAO Uralkali Suleiman Kerimov in the Belarusian Government, Prime Minister of Belarus Mikhail Myasnikovich said in an interview with the TV channel Belarus-1 on 28 December, BelTA has learnt.

"We agreed on the solutions to all the contentious issues that we discussed for almost a year," said the Belarusian Prime Minister. According to him, the parties agreed on the policy of sale of potash fertilizers in 2013-2015. "We agreed on the proportions of sales: in 2013 Belarusian fertilizers will take the share of 48.3%, in 2014 - 49% and in 2015 it will be 50% to 50%," said Mikhail Myasnikovich.

The sides practically agreed on the pricing formula, which was one of the most difficult issues, said the Prime Minister. The Belarusian side insisted on taking into account the quality of potash fertilizer, and reached an understanding on this issue with the Russian side. According to Mikhail Myasnikovich, apart from powder-like fertilizer Belarus also produces a lot of types of granular fertilizers that are more expensive as they require large production capacities and technology. “Of course, profitability and profit of Belaruskali should be higher,” said the Prime Minister.

Mikhail Myasnikovich also commented on the rumors of a possible termination of the Belarusian Potash Company. "There was a lot of talk in the media whether the Belarusian Potash Company would continue operating or not. I would like to reassure the public: BPC will aggressively step up sales in 2013, and will decrease the sale of potash fertilizers through Uralkali Trading, a company owned by Uralkali,” he said.

Belaruskali will not trade in potash fertilizers. As before, it will be mainly engaged in the production of potash fertilizers. This issue was also a matter of discussions with the Russian side,” the head of government said. According to him, the average selling price of potash fertilizer stood at $410 per tonne last year. In January-October the price rose to $433 per tonne. “Thus, by optimizing markets, effectively working with the volumes and price, I think that in 2013, we will restore the volume of sale and earnings at the level of 2011,” said Mikhail Myasnikovich.