Belarus may reduce potash production to raise prices

President of Belarus Alexander Lukashenko has proposed to agree with Russia to reduce the production of potash fertilizers in order to increase their price. This was reported by the Belarusian news agency BelTA.

“I don’t remember such prices in history at all: very low prices for potash fertilizers, even though the work of miners is not easy. Perhaps we should talk with the Russians, consult and reduce potash production by 10 percent, maybe 11 percent,” he said at a meeting with Andrei Rybakov, the new CEO of Belaruskali, the country’s largest potash producer.

According to Lukashenka, potash fertilizers have to be sold “for nothing, almost at cost, or even lower.”

And if production declines, “it’s not that there will be a shortage on the market,” but everyone will seemingly realize that “expensive products should be paid for accordingly.”

Russia and Belarus jointly control about 40% of the world’s potash exports. While Russia’s largest producer, Uralkali, is not under sanctions, Belaruskali was sanctioned by the European Union and the United States in 2022.

After that, the supply of potash fertilizers from Belarus fell by about a third. The company’s attempt to lift the sanctions through the EU court was unsuccessful.

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Tags: fertilizers, prices