Belaruskali okays setting up Soyuzkali GmbH

MINSK, 18 February (BelTA) - The Supervisory Board of Belaruskali endorsed the establishment of Soyuzkali GmbH, a trader of potash fertilizers jointly with OAO Uralkali, BelTA learned from director general of the Belarusian company Valery Kiriyenko.

“At a meeting on Friday the Supervisory Board of Belaruskali decided to register Soyuzkali GmbH given two issues are settled,” said Valery Kiriyenko. These questions relate to the exclusivity of sales, and payment for anti-monopoly procedures. These are organizational, technical issues, said Valery Kiriyenko.

Last week the Board of Directors of OAO Uralkali approved the establishment of Soyuzkali GmbH. According to the Russian company, the Russian-Belarusian company will be registered in Switzerland’s Zug. The authorized capital of Soyuzkali will make up Fr200,000. The share of Uralkali in the authorized capital of the joint venture will make up 50%. The commercial organization will be established once all necessary anti-monopoly checks are done, according to Uralkali. As reported earlier, the joint venture will sell Russian and Belarusian potash fertilizers on foreign markets. The company was expected to start operation by the end of H1 2013.

On 15 February First Vice Premier of Belarus Vladimir Semashko noted that the positions of the Belarusian and Russian sides on the joint company have been fully harmonized. Vladimir Semashko said that Belarusian Potash Company (BPC) will continue to work for the transition period. It will perform the same functions as now. When Soyuzkali is operational, BPC will be its general office in Minsk. Soyuzkali will also have office in Switzerland.

At present Belarusian Potash Company (BPC) is the sole exporter of potash fertilizers produced by Belaruskali and Uralkali. BPC was founded in 2005. The shareholders are Belaruskali (45%), Belarusian Railways (5%) and Uralkali (50%). Belarusian Potash Company accounts for more than 40% of MOP deliveries worldwide. BPC sells into Europe, India, China, Central and South America, the United States, the Asia-Pacific Region, Africa and the Middle East.