The Wall Street Journal: Cash-strapped Belarus sells Belaruskali

Deals are being discussed with Russia and China.

Cash-strapped Belarus is considering the sale of one of its most valuable state-owned assets, potash giant Belaruskali, and has already discussed possible deals with investors from China and Russia, The Wall Street Journal writes.

So far, the parties haven't been able to agree a price and other terms, according to people close to the situation. Belaruskali, the third-largest producer of the fertilizer in the world, could be worth as much as $20 billion, so a sale of even a minority stake would be a huge boost to Minsk's efforts to stabilize its stumbling economy.

Belarus Finance Minister Andrei Kharkovets said other potential buyers are also interested in the company, but the country will only sell it "if the price is right."

Russian billionaire Suleiman Kerimov has met top Belarussian officials to discuss buying a controlling stake in recent weeks, but the two sides remain far apart on price, according to people close to the situation.

Mr. Kerimov already owns OAO Uralkali, which after the completion of a merger with its main Russian rival will become the world's largest potash producer. The addition of Belaruskali would increase its dominance in the world market for the vital fertilizer. Uralkali and Belaruskali already have a joint venture. Uralkali and Belaruskali declined to comment Monday.

Belarussian officials also discussed a possible sale of a 25% stake with Chinese investors but failed to reach agreement, according to people close to the talks. It wasn't clear which Chinese state-backed entity was involved.

Belarus's Soviet-style economy is facing the worst crisis in more than a decade after Russia cut off energy subsidies and the budget deficit ballooned following heavy state spending ahead of December's presidential elections. The Belarus ruble has fallen 35% against the dollar this year and foreign currency remains in short supply inside the country. Over the weekend, Minsk reached a deal for a bailout loan from a Russian-led regional fund. But Belarus will need more financing this year, officials and economists say, and the authoritarian regime has applied for loans of up to $8 billion from the International Monetary Fund.

Minsk already agreed to sell $7.5 billion in state assets over the next three years as part of its loan deal with the Russian-led fund.

Separately Monday, Russian officials said they are close to a deal to buy the 50% of Beltransgaz, the country's natural-gas-distribution monopoly, that Moscow doesn't already own. Financial terms haven't been disclosed.