BELARUSIAN ECONOMY & TRADE

MINSK, Feb 17 (Prime-Tass) -- President Alexander Lukashenko of Belarus instructed the government and the administration of the state company Belaruskaly, based in the city of Soligorsk, in the Minsk Region, to optimize by June 2005 the potash fertilizers export scheme excluding unjustified mediators, according to the press service of the head of state.

The president gave such instructions earlier, but the government failed to get rid of needless mediators in the second half of 2004. During the Thursday meeting, which focused on the potash fertilizers issue, the president rebuked Prime Minister Sergei Sidorsky and Deputy Prime Minister Ivan Bambiza for inefficiency and reprimanded Speaker of the upper chamber of the Belarusian parliament Gennadi Novitski, Chairman of Belneftekhim holding Bronislav Sivoi and President’s aide Sergei Tkachev.

Lukashenko questioned the advisability of Andrei Bashura’s occupying the post of the Belaruskaly CEO.

“We do need a sales network. But we need it only if we fail to deal with sales ourselves. We must do everything ourselves in the production-sale chain. The key issue here is the transparency of sales and additional profit for the country,” Lukashenko said.

According to the head of state, Belarus loses some U.S. $100 million a year because of the large number of mediators.

The companies that sell potash fertilizers produced by Belaruskaly are registered in Russia, Austria, Denmark, Great Britain, Singapore with a small share of Belarusian capital, Lukashenko said. [Most of Belaruskaly’s output is sold to non-CIS foreign countries via the International Potassium Company and its commodity distribution network].

According to Lukashenko, transportation companies are the first link in the mediation chain. The president criticized the sales of fertilizers to Lithuania via the company, in which the controlling stake does not belong to the state. “Is Lithuania so far that we cannot launch direct sales or do it via our domestic company, which would be more profitable for Belaruskaly,” Lukashenko said.

He also criticized the transportation of fertilizers to Indonesia and Brazil by Belarusian Shipping Company. According to the president, the participation of mediators inflicted $327,000 losses on Belaruskaly and $56,000 losses on the state budget.

Belaruskaly was established in 1963. It includes four mine groups with a total annual capacity of 5.5 million tonnes of mineral fertilizers. The company accounts for 13.1% of the world’s potash fertilizers output

In 2004 the company produced 4.612 million tonnes of potash fertilizers, up 9% on the year. Exports increased 11% to 4.238 million tonnes.

International Potassium Company was established in 1992 by potash fertilizers producers Uralkaly, which controls 60% of Russia’s potash fertilizers market, Silvinit, which controls 40%, and Belaruskaly, to coordinate their foreign economic activity. Belaruskaly holds 33% in the company.

Uralkaly sells fertilizers independently, while Belaruskaly and Silvinit use the sales network of the International Potassium Company with no other options. End

16/02/2005

Belarus’ govt ups potassium salt output, downs oil extraction quotas

MINSK, Feb 16 (Prime-Tass) -- The Belarusian government has increased the quota on production of potassium salt 5.5% to 5.8 million tonnes and reduced the quota on extraction of oil by 2.2% to 1.810 million tonnes, a government official told Prime-Tass Wednesday.

Potash fertilizer output amounted to 4.612 million tonnes, and oil extraction reached 1.804 million tonnes in 2004.

Sodium chloride production quota was left unchanged at 1.360 million tonnes.

The government also raised the atmospheric pollutant emissions limit by 2.2% on the year in 2005 to 462,700 tonnes and reduced the effluent discharge limit by 1.9% to 1.212 billion cubic meters. End

14/02/2005

Belaruskaly’s potash fertilizer output up 17.3% on yr in Jan

MINSK, Feb 14 (Prime-Tass) -- The potash fertilizer output of Belarus’ state company Belaruskaly, based in the city of Soligorsk, in the Minsk Region, rose 17.3% on the year in January to 518,500 tonnes, an official with the company told Prime-Tass Monday.

Belaruskaly’s output in monetary terms rose 10.8% on the year in the period to 231,512 billion Belarusian rubles.

Belaruskaly’s exports increased 7.1% on the year in January to 444,500 million tonnes. The main buyers were from Asia and North and South America.

Non-CIS foreign countries account for 90% of all exports.

The company plans to raise output 2.2% on the year in 2005 to 4.714 million tonnes.

In 2004 the company produced 4.612 million tonnes of potash fertilizers, up 9% on the year. Exports increased 11% to 4.238 million tonnes. End (2,167 Belarusian rubles – U.S. $1)

10/02/2005

Belarus to up ‘05 fertilizer transshipment via Klaipeda port by 30%

MINSK, Feb 10 (Prime-Tass) -- Belarus plans to increase potash fertilizer transshipment via Lithuania’s seaport of Klaipeda 30% on the year in 2005 to 1.4 million tonnes, Bronislav Govorovsky, the head of the water transport department with the Transport Ministry, said following the meeting of the Belarusian-Lithuanian workgroup for optimization of transshipment of Belarusian cargoes via the Klaipeda seaport.

In future, potash fertilizer transshipment may reach 1.5-2 million tonnes, Govorovsky said.

“We may sign a long-term agreement on transshipment in the seaport with Lithuania’s Transport Ministry,” he said.

Klaipeda seaport is located 670 kilometers from Belarus. In 2003, Belarus’ cargo transshipment amounted to 4.650 million tonnes, down 1.4% on the year. Belarus’ cargoes account for about a quarter of the port’s cargo turnover. According to specialists, in 2004-2005 Belarus’ cargo transshipment via Klaipeda seaport may rise to 6-7 million tonnes.

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fertilisers

Lukashenko wants govt, Belaruskaly to optimize fertilizer export scheme

Belarus’ govt ups potassium salt output, downs oil extraction quotas

Belaruskaly’s potash fertilizer output up 17.3% on yr in Jan

Belarus to up ‘05 fertilizer transshipment via Klaipeda port by 30%