Belarus leader cuts potash export duty to zero

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

Belarussian President Alexander Lukashenko has cut export duty on potash to zero, his office said on Thursday, in a move clearly aimed at boosting exports of the fertilizer ingredient after the break-up of a sales cartel with Russia's Uralkali.

Uralkali pulled out of its potash trading alliance with Belarussian producer, Belaruskali, late last month, ending a partnership which controlled two-fifths of the $20 billion global potash market and sparking a fierce dispute with its small ex-Soviet neighbour.

The announcement was the first indication of direct intervention by the authoritarian Lukashenko in the dispute that has brought new strain to bear on the often tense relationship between the ex-Soviet states.

Since the turn of the year, export duty on potash in Belarus has been at 75 to 85 euros ($99 to $110) per tonne, but Lukashenko's office said in a statement this would be reduced to zero until the end of 2013.

"For the stable working of Belaruskali, the export duty rate will be reduced to zero from Sept. 1 to Dec. 31," the statement said, adding that Lukashenko had signed a decree to this effect.

At the same time, a new company had been set up coordinate exports of all the country's fertilizers, it said.

Uralkali triggered the row when it withdrew from the trade alliance with Belaruskali in a move that could push potash prices down 20 percent - an economic headache for Belarus.

Potash, an ingredient in mineral fertisilers, accounts for 12 percent of Belarus's state revenue.

Belarussian police subsequently detained Uralkali's chief executive Vladislav Baumgertner in Minsk on Aug 26 to the anger of Moscow which has hit back by imposing curbs on imports of hogs and pork products from Belarus.

On Thursday, Russian Deputy Prime Minister Arkady Dvorkovich hinted at the possibility of oil deliveries being reduced to Belarus and said Moscow was not satisfied with the safety of some products from its western neighbor.

Belarus relies on Moscow for energy supplies and financial help for its unstable economy, much of which is state-controlled along classic Soviet lines.

Lukashenko is a pariah in the West because of his harsh treatment of political opponents at home and, despite zig-zags in relations with Moscow, he remains important to the Kremlin as a military and economic ally. ($1 = 0.7577 euros)

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Related Articles

No matching related articles at this time.

Comments (0) Leave a comment 

e-Mail (required)


characters left


Meridian’s conveyors deliver seed with unmatched versatility. Meridian’s transport conveyors are manufactured with heavy-duty, fully enclosed construction. Meridian’s cross cleated ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form