OREANDA-NEWS. October 26, 2011. Uralkali has been informed that, on 24 October 2011 the Federal Antimonopoly Service (FAS) of the Russian Federation launched an investigation into the alleged setting of monopolistic high prices for potash by Uralkali, in breach of the Federal Law of the Russian Federation "On Protection of Competition". According to FAS, the investigation was launched following complaints from consumers of potash in relation to what they see as unjustified price increases.

Uralkali believes that it supplies potash to the domestic market in full compliance with the current legislation. We will fully cooperate with the FAS throughout the course of their investigation.

The terms of Uralkali’s sales to domestic consumers are determined by the Regulations on non-discriminatory access to the purchase of potash developed by the FAS and the Company’s Marketing Policy approved by the FAS. In 2010 Uralkali set favourable prices for agricultural producers which will remain in place until the end of 2011. Russian complex fertiliser (NPK) producers buy muriate of potash from Uralkali at the minimum export price with certain discounts. Moreover, Uralkali provides NPK producers with additional discounts for the potash volumes intended for the production of complex fertilisers for the domestic market. Russian industrial consumers buy MOP at the minimum export price excluding transportation costs.