OREANDA-NEWS. September 24, 2012. The operation of the yet-to-be-set-up Russian-Belarusian potash fertilizer trader Soyuzkali is to start in the second half of 2013, Uralkali CEO Vladislav Baumgartner told.

"According to our estimates, it will take from six to nine more months to set up Soyuzkali. Thus, it is to start working from the second half of 2013," Baumgartner said.

The joint venture (JV) is to be registered in Switzerland on the basis of the existing trader Belarusian Potash Company that will be terminated after the JV is established, Baumgartner added.

Potash distribution is planned as the company’s key business. Soyuzkali’s charter capital will be divided on a parity basis.

It was reported with reference to Belarus’ First Vice Premier Vladimir Semashko that Belaruskali and Uralkali were expected to reach a compromise on potash business practices: the average price of potash and the distribution of shares. At the moment, Belaruskali exports 47.5% of all potash fertilizers produced, while the share of Uralkali is 52.5%. Belarus finds it unfair and insists that the share of Belarusklai should be 49.15%.

Established in April 2005, Joint Stock Company "Belarusian Potash Company" (BPC) the sole exporter of potassium fertilizers produced by Belaruskali and Uralkali.

The BPC shareholding structure includes Belaruskali with 45%, Belarusian Railways (5%) and Russia’s Uralkali with 50%.

At the moment, BPC controls 42% of the world’s potash fertilizer market.