Belaruskali becomes a budget donor again
The production of potassium fertilizers in 2014 constituted 10.3 million tons, which is an all-time high for the enterprise, and is 48% higher than the total production of 2013.
Due to the introduction of the export duty on potassium fertilizers in 2015 of 45 euros per ton, one can expect the company’s financial standing to worsen. The repetition of record volumes of production will be complicated by the fact that the company would have only limited resources to invest in modernizing its equipment because of the obligation to transfer its quota of profits to the state budget. However, the growth in export prices on potassium fertilizers could improve the company’s foreign currency earnings in comparison to 2014. Due to the state’s critical need for the foreign currency, a repetition of the 2014 situation (with dumping prices on certain contracts) is possible.