OREANDA-NEWS. May 23, 2008. Belneftekhim concern has prepared a proposal for the government of Belarus for cooperation between Gomel Chemical Plant and Russian OAO Mineral and Chemical Company EuroChem, Belneftekhim’s Deputy Chairman Mikhail Osipenko told a press conference.

In his words, negotiations for setting up a joint venture by Gomel Chemical Plant and EuroChem continue. The Russian company has worked out a business plan for the development of the Belarusian plant.

“After interested ministries and agencies considered EuroChem proposals, Belneftekhim prepared a proposal for the government indicating our vision of promising avenues of cooperation with the Russian company,” said the official. In late May the EuroChem Director General is expected to visit Belarus, with final decisions concerning the project to be made.

Mikhail Osipenko underscored, it is premature to speak about proposals of the Russian company as the Belarusian side has not yet chosen the final variant of development of Gomel Chemical Plant that would meet requirements of all interested parties. “We are accustomed to the fact that domestic prices for fertilisers are somewhat different from world prices and it is difficult to switch to using the market mechanisms EuroChem offers,” he explained.

OAO Gomel Chemical Plant produces mineral fertilisers, salts and acids. The company accounts for over 90% of Belarus’ market of phosphorous fertilisers. The state owns 99,4% of the company’s shares.

Mineral and Chemical Company EuroChem combines such enterprises as Nevinnomyssky Azot, Novomoskovsky Azot, Kovdorsky GOK, Phosphorit, EuroChem – BMU, Lifosa AB. In 2006-2007 EuroChem shipped around 20% of its output to Belarus. EuroChem’s owner is Andrei Melnichenko, who comes from Gomel.