Belarus potash removed from Klaipeda Port’s 2022 production plan

<p> MINSK, Nov 29 - PrimePress. The management of the Klaipeda Port (Lithuania) no longer includes Belaruskali cargo into its 2022 plans, meaning that the port’s handling volumes are estimated to drop around 30%, said Klaipeda Port CEO Algis Latakas. </p> <p>   </p> <p> “Belaruskali fertilizers moved steadily with a small growth rate. And BKT (Biriu kroviniu terminalas, a bulk cargo terminal, with a 30% share owned by Belaruskali) was under development since Belaruskali has been increasing its production capacity every year, and if everything remained normal, those volumes would grow every year," Latakas told BNS. </p> <p>   </p> <p> Belaruskali bought a 30% stake in BKT in 2013. Up until then, the Belarusian company was BKT's biggest client as its products accounted for 85-95% of BKT's total handling volumes. </p> <p>   </p> <p> Belaruskali exported 1.4 million tons of fertilizers via Klaipeda in 2009, and the volumes rose to 8.1 million tons in 2017, accounting for 98% of BKT’s total handling volumes. They further grew to 10.7 percent in 2020 (98%). </p> <p>   </p> <p> According to Latakas, Klaipeda handled 15.8 million tons of Belarusian cargo in 2020. In Jan-Oct 2021 the port has already lost around 2 million tons of oil products, as well as up to 1 million tons of products from the Grodno nitrogen fertilizer plant (Grodno Azot). </p> <p>   </p> <p> “It’s a huge loss. And nothing will plug that hole quickly. Those volumes have been growing since around 2010 or even before that, by around 1 million tons a year. So we can understand how many years we might need to grow to cover for it,” Latakas said. </p> <p>   </p> <p> Under the OFAC order of August 9 (US Office of Foreign Assets Control), any transactions with Belaruskali or any other company with Belaruskali's direct or indirect ownership of 50 percent or more, need to be wound down by 7 p.m. Lithuanian time on December 8. </p> <p>   </p> <p> As previously reported, on 24 June 2021, the EU Council imposed sanctions targeting seven sectors of the Belarusian economy, including restrictions on the import and transit of potash from Belarus under contracts signed after 25 June 2021. The restrictions apply only to potash with a nutrient content (potash K2O) of less than 40% and over 62% (technical potash - used in metallurgical, chemical and petrochemical industries). Potassium fertilizers with a nutrient content of 40% to 62%, the most popular potassium fertilizers in the world, are not yet subject to import ban. The list of products banned for import from Belarus also includes compound fertilizers containing potassium chloride (produced by Belaruskali and the Gomel Chemical Plant). End </p> <p>   </p>

2021-11-30

Primepress