Belarus potash exporter says sanctions will increase global prices (updated)

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10/08/2021 15:05

(Adds quotes, details, background)
    MOSCOW, Aug 10 (Reuters) - Belarus Potash Company (BPC), the
exporting arm of state potash producer Belaruskali, said on
Tuesday that Western sanctions on Belaruskali would lead to an
increase in global potash prices and reduced availability of the
crop nutrient. 
    Washington on Monday blacklisted Belaruskali, one of
Belarus' largest state-owned enterprises and one of the world's
largest producers of potash, and imposed other punitive measures
against Belarusian leader Alexander Lukashenko.  urn:newsml:reuters.com:*:nL1N2PG11B
    The U.S. sanctions do not include BPC, whose supplies
account for 20% of global potash trade. Belaruskali owns a 48%
stake in BPC and the rest belongs to other state firms.
    "The impact of the sanctions is difficult to assess at this
point in time. But what is certain is that they will lead to
higher potash prices and its lower availability on the global
market," BPC said.
    "We are examining the decisions taken in detail. BPC will
make every effort to fulfil its obligations to its partners
within the current legal framework," it added.
    BPC ships potash mainly to China, India and Brazil and
competes with Canada's Nutrien  NTR.TO  and Mosaic  MOS.N  among
others.
    "Although the U.S. makes up no more than 10% of
Belaruskali's revenues, the cross sanctions threat might squeeze
Belaruskali's markets even more," analysts at VTB Capital said
in a note, referring to potential fears among firms that deal
with Belaruskali that they could face U.S sanctions. 
    VTB Capital expects the U.S. sanctions to have limited
impact on both of the firms for now, but add to nervousness on
an already tight potash market.
    A senior Indian industry official involved in import
negotiations, who declined to be named, said they did not expect
any impact in the short-term.
    "We have signed potash imports contracts earlier this year
and those are unlikely to be affected by the sanctions," the
official said.
    The official said potash could also be sourced from Russia,
Canada, Germany or Israel if need be.

 (Reporting by Polina Devitt and Rajendra Jadhav in Mumbai
Writing by Tom Balmforth
Editing by Kirsten Donovan and Mark Potter)
 ((Tom.Balmforth@thomsonreuters.com))