MOSCOW- Russian potash producer Uralkali has no intention of buying potash assets in Belarus, the board chairman of fertiliser producer Uralchem, which owns Uralkali, told Reuters on Wednesday.
Local media in Belarus reported this week that Uralkali was considering buying Belaruskali and Slavkali, both of which were placed under U.S. sanctions last year as the West escalated punitive action against Belarus President Alexander Lukashenko.
"This is not true. We are not considering the development of potash assets outside the Perm region (in Russia). Our interests in potash are concentrated only in this region," Uralchem board chairman Dmitry Konyaev said.
Uralkali, which plans to launch three new potash mines in Russia by 2030, has had no meetings with Belarusian peers and any such proposals from the Belarusian side would not be considered, Uralchem said.
Apart from Belaruskali, Uralkali competes in the potash market with Canpotex, the export company owned by Nutrien and Mosaic Co, which signed new 2022 potash supply deals with China and India this week.
The price for both is at $590 a tonne on a cost and freight basis.
"Such a price level is quite positive (for the market). It is the highest since 2008," Konyaev said, adding that Uralkali plans to sign its deal with India soon.
The price of annual supply contracts with China and India usually serves as the bottom level for other consumers who buy potash from producers at higher price.
Last year Belarus Potash Company (BPC), Belaruskali's trade arm, was the first major producer to sign contracts with China and India. The price was set at $247 and $280 a tonne respectively.
Washington gave BPC's clients until April 1 to wind down their business with the company, fuelling concern over a prolonged price rally in the potash market. Spot prices for the crop nutrient are near 10-year highs.
(Reporting by Polina Devitt Editing by David Goodman) ((Polina.Devitt@thomsonreuters.com))
