OREANDA-NEWS. July 13, 2011. OJSC Uralkali (LSE: URKA), one of the world’s largest potash producers, announces that on 13 July 2011 the anti-dumping measures, applied to the deliveries of Russian produced potassium chloride to the EU countries, expire. Thus, the quotas on duty-free exports of Uralkali’s products to the EU, as well as the anti-dumping duty on the volumes imported into the EU above the quantitative ceiling, were terminated.

According to the anti-dumping regulation, Russian potash producers Uralkali and Silvinit could export, duty-free to the EU, approximately 1.53 million tonnes of KCL consisting of ca. 830,000 tonnes by Uralkali and ca. 700,000 tonnes by Silvinit. Where the imports into the EU exceeded the quota, the anti-dumping duty was 12.3% for Uralkali’s products and 23% for Silvinit’s products. Neither company, however, has ever exceeded its quota. In 2010, Uralkali’s sales to Europe amounted to 14% of the total sales, and Silvinit’s sales to Europe amounted to 11% of the total sales.

The anti-dumping measures, applied to Russian potassium chloride EU deliveries, were imposed in 1992 and then reviewed every five years. On 11 July 2006 the measures were extended by the EU Commission for the last time. Following the combination between Uralkali and Silvinit, Silvinit's quota ceased to exist and the combined company delivered its products to the EU within the framework of Uralkali's quota.

Vladislav Baumgertner, Uralkali CEO, said:

“We view positively the prospects of the European potash market, which accounts for 13% of sales of the combined company. The expiry of the anti-dumping measures allows Uralkali to avoid the procedure of revision of the conditions of its deliveries following the combination between Uralkali and Silvinit as well as possible disruptions of deliveries to the European market”.