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Belaruskali CEO upbeat about Belarusian Potash Company's prospects

Belarusian Potash Company (BPC) may soon become a leader among potash traders, Valery Kiryyenka, director general of Belarusian potash giant AAT Belaruskali said during a show broadcast by state television network Belarus One on Sunday evening.

On July 30, Russia's potash producer Uralkali announced its decision to stop exports through BPC, its joint trader with Belaruskali. Belarusian authorities claim that the collapse of the Belarusian-Russian potash sales cartel has caused Belarus severe economic damage.

Mr. Kiryyenka said that customers were aware of the "logistical advantages" of Belaruskali and openly expressed an intention to purchase its potash through BPC. "We meet with buyers and find points of contact as we discuss how to get out of the situation to prevent market prices from plunging to the level forecast by Uralkali," he said.

It is necessary to restore the potash industry, which was disrupted by Uralkali's statements, and forget the "scandal" that broke out a month ago, Mr. Kiryyenka stressed.

He accused Uralkali of abandoning the principle it had "constantly forced upon BPC," namely, that "price is above everything else." He said that Uralkali's lack of consistency had come to him as a greater shock than its decision to exit its cartel with Belaruskali.

According to Mr. Kiryyenka, Belaruskali repeatedly pointed out to Uralkali the possibility of gradually lowering prices, like other traders, but was told every time that that would be economically inexpedient.

It is clear from meetings with customers that they are waiting for potash prices to bottom out, Mr. Kiryyenka said, adding that Belaruskali would try to prevent them from plunging.

When asked Belaruskali's decision to reduce its output of potash and decrease the wages of its employees by one-third, Mr. Kiryyenka said that the company had repeatedly suspended its operation in the fourth quarter of 2011 and the first quarter of 2012 to wait for higher prices. During those periods, Belaruskali did major renovations to its facilities, he said. //BelaPAN