EU Removes Quotas for Potash from Belarus and Russia

The EU anti-dumping measures against Belarusian and Russian potash producers expired on 13 July 2011, BelTA learned from the head of public relations at Belarusian Potash Company Filipp Gritskov.

Accordingly, duty-free import quotas on Uralkali and Belaruskali and import duties on deliveries in excess of quotas are no longer in force.

In accordance with the antidumping regulations, Russian producers of potash Uralkali and Silvinit were allowed to supply about 1.53 million tonnes per year duty-free to the EU, with about 830,000 tonnes as Uralkali's share and about 700,000 as Silvinit's. If the companies exceeded the quota, import duties were applied at the rate of 12.3% for Uralkali and 23% for Silvinit. Belaruskali could deliver 700,000 tonnes of potash fertilizers to the EU duty-free. Exceeding the quota implied a 27.5% import duty.

The anti-dumping measures against the Belarusian and Russian producers of potash fertilizers were in force in the EU since 1992 and were subject to revision every five years. The last time the measures were revised by the European Commission was on 11 July 2006.

When commenting on the event, General Director of Belarusian Potash Company (BPC) Vladimir Nikolaenko noted that it is the result of years of hard work Belarusian Potash Company, Uralkali and Belaruskali and international legal consulting agencies.

"After the removal of quotas on duty-free import to the EU, BPC will significantly strengthen its position in the European market, which in turn will have a positive impact not only on the performance of the Belarusian and Russian shareholders, but also on their input to the economy of the two countries," he said.

Uralkali chief executive Vladislav Baumgertner, in turn, praised the prospects for the European market, which accounts for about 13% of the sales of the combined company. "With the anti-dumping measures expired, Uralkali will not have to face the procedure of revision of the terms of delivery in connection with the merger of Uralkali and Silvinit. This will also allow avoid possible disruption of supplies to the European market," he noted.

The Belarusian Potash Company is the exclusive exporter of potash fertilizers produced by Belaruskali and Uralkali. The company was set up in 2005 by Belaruskali (45%), Uralkali (50%) and the Belarusian Railways (5%).