Belarus’ Potassium Industry Thrown Into Disorder

Lukashenka had to go for a decrease of the export fee for Potassium Chloride in order not to lose markets.

Belarus reduces the rate of the export fee on Potassium Chloride to EUR 45 per ton from the previous EUR 55, for the period from October 1 to December 31 this year. This decision was approved by Lukashenka’s decree # 392 of October 25, published on the National Legal Internet Portal.

According to the information of tut.by, the potassium branch representatives have been lobbying the decrease of the fee for a long time, given the conditions of the noticeable dilution of the market, reduction of both prices and volumes of shipment. In particular, according to the information for the last 8 months, the average price for Potassium Chloride has decreased by almost a quarter. Upon the results of the first half a year, “Belaruskaliy” has lowered the net profit by 5,2 times and managed to hold only to the second place among the Belarusian JSCs.

As previously informed, the export fee was nullified since September 2013, to lower the loading on the “Belaruskaliy” JSC in the conditions of sharp decrease of the export volumes after the scandalous refusal of Russia’s “Uralkaliy” to work through the joint sales company Belarusian Potassium Company.

In Belarus, they started to charge the fee again in 2015, setting it at the level of EUR 45 per ton. The export of Potassium Chloride made 9,2 million tons last year. In 2016, the fee was increased up to EUR 55.

According to the journalists’ information, this fee was set in the budget for the year 2017 at the level of EUR 55 per ton.

The fee is taken when exporting potassium fertilizers outside the borders of the Eurasian Economic Union (with an exception of fertilizers, exported to Azerbaijan, Georgia, Serbia and Turkmenistan).

As informed before, the zero rate of the export fee on potassium fertilizers was established by the Decree #400 dated September 5, 2013 to secure stable functioning of the "Belaruskaliy" JSC. Originally, the Decree was in force up to December 31, 2013, then the validity period was extended until March 31, 2014, and after that - until December 31. Before the abolition of the export fee it amounted to EUR 75-85 per ton.