There is uncertainty about the fate of the potash cartel. Belarus President Alexander Lukashenko says that potential investors in Russian potash producer Uralkali (LSE: URKA) want to renew the potash cartel which it quit in July. The share price of Israel Chemicals Ltd. (TASE: ICL) rose 3.5% in morning trading in response to the remarks.
"The situation is getting back to normal, even without their involvement," said Lukashenko, according to the Belarusian Telegraph Agency (BeITA). "I have been approached by the people who want to buy potash fertilizers from Belarus."
Lukashenko said that the parties wanted to buy potash from a trusted partner. "Ours is a state-owned organization. Its reputation is solid. We have been trading well and will continue to do so in the future. The Russians will come back to us," he said.
Last week, Lukashenko met Russian President Vladimir Putin and discussed the breakup of the potash cartel by Uralkali. "I said that they will come back to us, to our company. Vladimir Putin responded that he did not rule this out. Uralkali is changing owners. Many are bidding to buy this asset," said Lukashenko. "Potential buyers have already signaled that they will be back with us in a little while."
Lukashenko lambasted Uralkali, saying, "Only an idiot will work against his own interests. Our re-merger with the Russian company will raise prices for potash fertilizers. Separation will definitely bring the prices down."
After the Putin-Lukashenko meeting, Uralkali's CEO, who was arrested by Belarus authorities last month, was released from jail to house arrest in the country. He could be indicted and jailed for up to ten years, after dismantling the potash corporation and sending the global potash market into a tailspin.
Published by Globes [online], Israel business news - www.globes-online.com - on September 29, 2013
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