Belarus dumps in Russian potassium fertilizers market

Moscow has accused Minsk of supplying potassium fertilizers to Russian market at dumping prices.

The respective issue was discussed on Tuesday at a meeting in Moscow between Russia’s vice-Prime Minister and the chairman of the board of the Development Bank of the Republic of Belarus Siarhej Rumas, a source reported, familiar with the agenda. The fact of the negotiations was confirmed also by one of Belaruskali’s top-level managers, Interfax reports.

“Russian party demands to stop the shipments of potassium fertilizers to its market, it was uncompromising at the negotiations”, - one of the agency’s interlocutors noted.

A source in Belarus’ potassium branch explained that it is the matter of the shipments of Belarusian potassium chloride to Russia via independent trading structures.

“The Bealrusian Potassium Company does not itself export potassium chloride. But after Lukashenka’s decree number 566 was adopted (the decree of 22 December 2012, which abolished BPC’s exclusive right to export Belarusian potassium), private trading companies started dealing with potassium fertilizers exports. They purchased potassium chloride directly from the Belaruskali and shipped it to Russia”, - the agency’s interlocutor explained.

A source at a company, producing complex fertilizers, reported that Belarusian potassium chloride is offered in the Russian market at a significantly discounted price, as compared to the one of Uralkali.

The regulations of the Customs Union of Russia, Belarus and Kazakhstan rule out the possibility of using customs duties in mutual trade, nevertheless, they provide for the possibility of introducing protective and anti-dumping measures, one of the agency’s interlocutors reminded. According to his data, whereas in the whole year of 2012 9 thousand tons of Belarusian potassium chloride was exported from Belarus to Russia, in in the first half-a year of 2013 the number accounted for 27 thousand tons.

Dvorkovich’s representative Alia Samigullina refused to comment on the meeting with the Belarusian party.

We would remind that on 29 July Uralkali announced the cessation of deliveries via the BPC, which is its joint potassium fertilizers trader with Belaruskali. Up to mid-2013 the BPC virtually supplied 40% of the total volume of world’s potassium fertilizers market, although Uralkali’s share in BPC’s deliveries had been decreasing since 2010 and in 2012 accounted for 22% of the joint trader’s total volume of shipments. Now Uralkali will do all the deliveries via its own trader Uralkali Trading. As Uralkali’s director general Vladislav Baumgartner assured, the reason for ceasing the cooperation with the BPC were multiple shipments of Belaruskali’s products outside the joint trader’s system.