Potash sales in 2014 provided by dumped prices
The BPC had to dump the potash prices to sign these contracts and to preserve the foreign currency proceeds. Lower prices will ensure that Belaruskali’s capacities are fully utilized while Belarus’ agreement with Brazil is pending (Uralkali has become active in the region). The BPC export strategy implies that Belarus has an acute need in foreign currency proceeds – she has prioritized volumes over profitability.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.