Revenues from potash fertilizer sales in 2017 could decrease compared to 2016

Belaruskali has projected to produce 10 million tons of potash fertilizers in 2017, of which up to 9.5 million tons will be exported. These volumes are comparable to those in 2016. In Q1 2017, the enterprise produced three million tons of fertilizers. Potash production is likely to gradually decrease and, hence the chemical industry would have a lesser impact on the industrial production index in Minsk Oblast and Belarus as a whole. The world potash market is unlikely to see price hikes. The growth in salaries in the Soligorsk region will be insignificant due to the need to replenish the budget due to the export duty on potash fertilizers and further investments by the enterprise in the new facility construction. Provided that, prices have slumped by more than 20% as compared with 2016, if export volumes do not increase, currency proceeds from potash sales could reduce by USD 300-350 million in comparison with 2016.