OREANDA-NEWS. October 7, 2011. JSC Uralkali (LSE: URKA) (the "Company"), one of the world’s largest potash producers, announces that on October 6, 2011 the Company’s Board of Directors approved a buyback program in respect of ordinary shares of Uralkali, nominal value 0.5 rubles per share ("Shares") and Global Depositary Receipts ("GDRs") representing Shares (each GDR representing 5 Shares) (the "Program"). The aggregate amount of the Program will not exceed USD 2.5 billion that may be invested in the purchases of Shares and GDRs throughout a period between October 6, 2011 until October 6, 2012. This decision reflects the Company’s belief that the creation of shareholder value over the long term requires a balanced approach to investing in organic growth and returning excess capital to shareholders whilst maintaining a robust capital structure in line with the previously announced medium term goal of keeping net debt to a range of 1.0x — 2.0x of LTM EBITDA.

Purchases of Shares and GDRs pursuant to the Program will be conducted by brokers to be engaged by ENTERPRO SERVICES LTD (the "Purchaser"), an indirect wholly owned subsidiary of the Company. The brokers will carry out purchases of Shares in Russia and GDRs on the London Stock Exchange in the U.K., at prevailing market prices at the time of purchases. It is the Company’s intention to seek subsequent cancellation of Shares and GDRs acquired in the Program, provided that necessary corporate approvals and respective corporate actions are in place.

At the same meeting, the Company’s Board of Directors approved a non-revolving credit facility with Sberbank of Russia in the amount of up to RUB 66 billion (approximately USD 2 billion according to the exchange rate of the Russian Central Bank as of October 06, 2012), a currency interest rate swap with Sberbank and a USD 2 billion intergroup loan to the Purchaser.

Commenting on the Program, Vladislav Baumgertner, Chief Executive Officer and member of the Board of Directors of the Company, said:

"The Board of Directors is convinced that the fundamentals of the potash industry remain highly attractive and Uralkali’s prospects as one of the leading global potash producers gives the Company a high degree of confidence as to the ability to deliver strong financial performance. That is why we announce a buyback Program which reflects our ongoing commitment to shareholder value while retaining a robust capital structure providing a strong platform for long term growth."