OREANDA-NEWS. May 17, 2012. Pursuant to the terms and conditions of the agreement between the Russian Association of Fertiliser Producers and the Agri-industrial Union of Russia (“the Agreement”), Uralkali (LSE: URKA) announces the ceiling price for its potash fertilisers to be supplied directly to Russian agricultural producers in H2 2012.

Uralkali will keep the ceiling price for domestic agricultural producers in H2 2012 at H1 2012 level of RUB 4,760 per tonne.

In 2012, in accordance with the Marketing Policy of the Company agreed with the Russian Federal Antimonopoly Service, Uralkali has increased its price for potash intended for Russian agricultural producers in line with the industrial inflation index. According to the forecast of the Federal State Statistics Service of the Russian Federation published in Q1 2012, the actual industrial inflation index rate amounted to 112.0% in December 2011 year-on-year. Thus the ceiling price for the agricultural producers for 2012 was calculated as RUB 4,760 per tonne of potassium chloride.

Background information

The agreement aimed at satisfying Russian agricultural producers’ demand for mined fertilisers in 2008–2012 was signed by the Russian Association of Fertiliser Producers and the Agri-industrial Union of Russia on 17 October 2008. The agreement specifies that Russian manufacturers of mined fertilisers should announce their prices for agricultural producers.