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26.12.2012

Formation of Soyuzkali company cancelled?  ? 27

15:53, — Politics

Formation of Soyuzkali company cancelled?

The formation of the joint company, which was planned to happen by the beginning of 2013, is open to question.

The Belarusian authorities didn't take the final decision on formation of Belarusian-Russian potash company Soyuzkali, which was expected to sell Belaruskali and Uralikali's production in international markets, Prime news agency learnt from source in the Belarusian government.

It was planned that Soyuzkali would be created by the beginning of 2013 and start full work in the second half of 2013. It was planned to register the company in Switzerland. Belarus said Belaruskali and Uralkali would each own 50% in Soyuzkali.

A decision on Soyuzkali has not been taken yet. We still have those who support and oppose the idea of formation the company. Each side has arguments. The position is not defined in general. The Belarusian side doesn't see the necessity of creation of a new company, the source said.

He added he didn't know when a decision on the issue would be taken.

The source reminded that Soyuzkali's basic documents had been prepared in late August. The sides just needed to agree on two issues: distribution of potash sales in foreign markets and setting a pricing formula for potash fertilisers.

Under the prepared documents, Soyuzkali is expected to work on the principles used for Belarusian Potash Company: all export sales will be made through Soyuzkali, while shares of Uralkali and Belaruskali in sales will depend on potential production capacity of each of the companies.


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