OREANDA-NEWS. Uralkali (LSE: URKA; the “Company”) announces that on 5 June 2013 the Board of Directors approved the terms of a purchase of up to 188,658,827 ordinary shares of the Company from Forman Commercial Limited (“Forman”), a company beneficially owned by Mr. Zelimkhan Mutsoev.

It is expected that the purchase will be conducted by Enterpro Services Limited, a wholly-owned indirect subsidiary of the Company, at the price of RUB 217.3 per share, which represents:

a discount of 5 per cent to one-month volume weighted average price of the Company’s shares traded on the Moscow Exchange; and

a 6.2 % discount to the closing price of shares of the Company on the Moscow Exchange on 4 June 2013.

In connection with consideration of the proposed transaction, the Board of Directors received advice from VTB Capital plc.

The purchase is subject to execution of definitive documentation and satisfaction of certain conditions.

It is the Company’s intention to seek subsequent cancellation of the purchased shares, provided that necessary corporate approvals and respective corporate actions are in place.

The Company will continue to periodically undertake on-market purchases of its shares as announced in November 2012.

Commenting on the purchase of shares, Mr. Alexander Voloshin, Chairman of the Board of Directors, said:

“Mr. Mutsoev has been a long term supportive shareholder, dating back to his investment in Silvinit, with an aligned vision to create a leading international fertilizer company. The Board of Directors understands that the sale by Mr. Mutsoev has been taken as he wants to focus on public service. The Board of Directors remains confident in the medium term potash market dynamics and the Company’s leading position.”

Commenting on the purchase of shares, Vladislav Baumgertner, Chief Executive Officer and member of the Board of Directors, said:

“The Board of Directors believes that the acquisition of shares from Mr. Mutsoev represents a compelling opportunity to acquire shares at a discount to prevailing market price. The Company enjoys a robust capital structure and the proposed transaction is consistent with the Company’s strategy of balancing investment in organic growth and utilising the strong cashflows of the business. The acquisition of a material stake will increase the share of the free float to over 50 per cent post cancellation.”

Anna Kolonchina, Executive Managing Director of Nafta Moskva and a member of the Board of Directors, said:

“Nafta Moskva continues to believe that the medium term dynamics for the future of the fertiliser business remain compelling and we look forward to participating in this growth over the longer term”.