EU sanctions against Belarus potash industry will cause fertilizer deficit in global market - BPC
<p> MINSK, Jun 22 - PrimePress. The European Union’s sanctions against Belarusian potash fertilizers may cause a deficit on the world market and a sharp rise in prices for this kind of fertilizers, the press service of Belarusian Potash Company (BPC) said in a commentary for RIA Novosti. </p> <p> </p> <p> “Belarusian potash accounts for more than 20% of global exports. The move to restrict such a significant volume of supply will inevitably lead to an irreversible shortage of potash and a sharp rise in prices for this type of fertilizer. As a consequence, food prices will go up all over the world,” the BPC press-service said commenting on the possible ban on supplies of Belarusian potash fertilizers to the EU countries as well as on their export through the EU member states. </p> <p> </p> <p> “Potash fertilizers are key to food security not only for Belarus and Europe, but for the whole world. At the moment, there is a clear shortage of potash worldwide and IFA forecasts that this shortage will continue until 2050. All producers are working at full capacity this year and still cannot meet the current global demand for potash. We can see how this is reflected in prices, which in some regions have already almost doubled in less than six months,” the BPC press office said. </p> <p> </p> <p> The discussion of sectoral economic sanctions against Belarus will continue at a summit of the EU heads of state on June 24-25. The sectoral sanctions would be approved after the summit. The restrictions will target Belarusian exports to the European Union. It is assumed that exports of potash fertilisers may be subject to restrictions. </p> <p> </p> <p> If the EU bans imports of Belarusian potash fertilizers, it would result in considerable losses for Belarus, despite the relatively small volume of potash supplies to the European market. In 2020 Belarus sold $196 million worth of potash fertilizers to the EU, whereas the entire export of Belarusian potash fertilizers amounted to $2.721 billion in value terms. BPC will probably be able to redistribute the European export volume, but it may entail not only the loss of traditional buyers, but also a serious blow to the supplier’s business image and financial losses. </p> <p> </p> <p> Established in 2013, BPC acts as Belarus’ designated export trader of potash fertilizers produced by OAO Belaruskali. </p> <p> </p> <p> BPC shareholders are Belaruskali (Soligorsk, Minsk Oblast), Belarusian Railways and state enterprise Beleximgarant. In 2018, the BPC share in global exports of potash fertilizers amounted to 20.5%. The geography of BPC exports covers 133 countries. End </p> <p> </p>
2021-06-23
Primepress
EU sanctions against Belarus potash industry will cause fertilizer deficit in global market - BPC
MINSK, Jun 22 - PrimePress. The European Union’s sanctions against Belarusian potash fertilizers may cause a deficit on the world market and a sharp rise in prices for this kind of fertilizers, the press service of Belarusian Potash Company (BPC) said in a commentary for RIA Novosti.
“Belarusian potash accounts for more than 20% of global exports. The move to restrict such a significant volume of supply will inevitably lead to an irreversible shortage of potash and a sharp rise in prices for this type of fertilizer. As a consequence, food prices will go up all over the world,” the BPC press-service said commenting on the possible ban on supplies of Belarusian potash fertilizers to the EU countries as well as on their export through the EU member states.
“Potash fertilizers are key to food security not only for Belarus and Europe, but for the whole world. At the moment, there is a clear shortage of potash worldwide and IFA forecasts that this shortage will continue until 2050. All producers are working at full capacity this year and still cannot meet the current global demand for potash. We can see how this is reflected in prices, which in some regions have already almost doubled in less than six months,” the BPC press office said.
The discussion of sectoral economic sanctions against Belarus will continue at a summit of the EU heads of state on June 24-25. The sectoral sanctions would be approved after the summit. The restrictions will target Belarusian exports to the European Union. It is assumed that exports of potash fertilisers may be subject to restrictions.
If the EU bans imports of Belarusian potash fertilizers, it would result in considerable losses for Belarus, despite the relatively small volume of potash supplies to the European market. In 2020 Belarus sold $196 million worth of potash fertilizers to the EU, whereas the entire export of Belarusian potash fertilizers amounted to $2.721 billion in value terms. BPC will probably be able to redistribute the European export volume, but it may entail not only the loss of traditional buyers, but also a serious blow to the supplier’s business image and financial losses.
Established in 2013, BPC acts as Belarus’ designated export trader of potash fertilizers produced by OAO Belaruskali.
BPC shareholders are Belaruskali (Soligorsk, Minsk Oblast), Belarusian Railways and state enterprise Beleximgarant. In 2018, the BPC share in global exports of potash fertilizers amounted to 20.5%. The geography of BPC exports covers 133 countries. End