23-08-2012 10:02 Belarus
Belarus, Russia still at odds over Soyuzkali deal
The Belarusian and Russian sides have not reached an agreement on all the terms to create the joint venture Soyuzkali on the basis of ZAO Belarusian Potash Company, BelTA learned from Valery Kiriyenko, Director General of OAO Belaruskali (a shareholder in Belarusian Potash Company).
A session of the supervisory board of Belarusian Potash Company took place on 21 August. Soyuzkali creation was discussed at the session. “We have managed to fix some issues,” said Valery Kiriyenko. Yet he stressed that despite the two sides getting closer to an agreement, the key aspects have yet to be adjusted. “There are things that require further discussion. Interests of the country are at stake, we are defending our point of view, Uralkali’s defending theirs,” explained the Belaruskali Director General.
In his words, these matters require a decision of the owner. The decision can be made by the Presidium of the Council of Ministers of Belarus. Valery Kiriyenko added that these matters are not related to the sales policy or stakes of shareholders in the joint company Soyuzkali.
Earlier First Vice Premier of Belarus Vladimir Semashko said that by late 2012 – early 2013 Belarus and Russia plan to create and register Soyuzkali Company in Switzerland. The company will be created by Belaruskali and Uralkali on the basis of ZAO Belarusian Potash Company. It will take over Belarusian Potash Company functions as an exclusive trader for both companies. OAO Belaruskali and OAO Uralkali are expected to contribute 50% of the future company’s authorized fund each.
ZAO Belarusian Potash Company was founded in 2005. The shareholders are Belaruskali (45%), Uralkali (50%) and Belarusian Railways (5%). Belarusian Potash Company accounts for over 40% of the global export of potash fertilizers, shipping them to Europe, India, China, Central and South Americas, the USA, the Asian-Pacific Region, Africa, and Middle East.