OREANDA-NEWS. Belarusian Potash Company is ready to restore its cooperation with Russian fertilizer producer Uralkali after Onexim Group, controlled by Mikhail Prokhorov, signed an agreement to buy a 33.6% stake in Uralkali from Suleiman Kerimov and his partners, Deputy CEO Alexander Polyakov said on Monday.

“The accord between the Belarusian and Russian parties is positive for the market. Investors were even waiting for it, and we are ready, we are not closed,” Polyakov said.

The conflict between Uralkali and Belaruskali led to the breakup of their joint venture (JV) in July after Uralkali accused its Belarusian partner of undermining sales. It was aggravated in August by the arrest of Uralkali's CEO Vladislav Baumgertner. Uralkali's co-owner Suleiman Kerimov was also accused under the Baumgertner case and the Belarusian government asked Interpol to put him on its international most wanted list.

“We hope that Uralkali will change its attitude to the market, to consumers…we hope that it will correct the pricing policy,” he said.

Belarus reluctant to cut potash price

Belarusian Potash Company will not cut prices just in order to raise sales, Polyakov said. “We do not support the idea of selling maximum volumes at minimal prices and of stripping the producers of income despite the fact it is easy to sell vast amounts at borderline low prices these days,” he said. “Some companies may afford the expense of selling potash at sacrifice prices, but they can't do that for long,” Polyakov said. “The present-day price guarantees minimum profits for the majority of manufacturers. Nobody is going to put up with this for long and therefore there will be consolidation either way. According to our forecasts, early next year the price will start growing,” the BPC chief said. Polyakov did not venture to guess what would be the price of potash next year, as all manufacturers are waiting to the Chinese market to come alive.

Belarus' potash trade back to normal

BPC Deputy CEO Konstantin Deduk said that the company managed to restore its sales on all the markets after the breakup with Uralkali. End

“We are now picking up the pace. In October 2013 the BPC exported in excess of 400,000 tonnes of potash fertilizers, which is more that was sold in October 2012,” Deduk said.

In his words, the Belarusian potash manufacturer has managed to maintain its presence on all traditional markets.

BPC forced to practise container exports

Under present conditions, the BPC finds it possible to practise container exports of potash fertilizers, BPC Sales Director Andrei Chushev told reporters.

“Wholesale purchasers now prefer small cargoes of potash, but they do regularly, almost every week. Nobody wants to risk money because of the price fluctuations,” Chushev said.

In his words, the BPC currently ships potash in containers to 60 countries of the world and gets tariff bonuses from transport companies.

“Countries from the South-East Asia and China ship their products to Europe in containers and used to get them back empty. Now they get those containers packed with sacks of potash fertilizer,” Chushev said.