Leanid Zaika: We can pull the plug on Soyuzkali

The Russian side has understood the cooperation with the Belarusian Potash has no prospects.

Economist Leanid Zaika spoke to charter97.org about today's decision of Uralkali company.

“This result was expected, because the Belarusian party was brazen enough to raise potash prices up to $1,000 per tonne, though the weighted average price is $500-600. Potash fertilisers prices have gone down $100 per tonne. I think the actions by the Belarusian side were so obvious, that Suleyman Kerimov and Russia's representatives saw lack of prospects in cooperation with BPC,” the expert thinks.

The expert doesn't hide the merger of Uralkali and Belaruskali was a predatory project.

“If someone in Russia thinks that some billionaires can replenish their purses with this project, its a mistake. I am sure that the plug will be pulled on predatory projects, including Soyuzkali. It will be the most productive decision for July--August 2013,” the economist said.

He adds that the Belarusian potash producer should only produce potash for domestic consumption plus 20--40% of domestic consumption for foreign sales.

“The situation in the global potash market will begin to change just after Belarus sharply decreases sales. Secondly, let's stop using the country's natural resources like barbarians. Why do Americans freeze their mineral deposits? Belarus will not have a modern economy as long as we count on selling raw materials. Selling raw materials is like selling someone's body, or, in popular language, prostitution. Stop 'economic prostitution'. We must base our economy on human resources and the intellect of the Belarusian nation,” Leanid Zaika is confident.

It should be reminded that the Board of Directors of Uralkali took a decision to stop export sales through the Belarusian Potash Company.