MOSCOW, Aug 19 (PRIME) -- Belarusian state-owned potash producer Belaruskali will not cooperate with Russia’s Uralkali, which broke a partnership with the firm last month that allowed the two companies to dictate prices to the market, under its current ownership, CEO Valery Kiriyenko said on Monday, RIA Novosti reported.
“I will never cooperate with Uralkali … after what they had done. May be under another ownership,” Kiriyenko said. “No way under the current policy.”
In July, Uralkali ended the joint sales practice with Belaruskali and said it would focus on increasing production volumes.
“Their new sales strategy shocked me. It also affected the consumer. Why is the market dead? There is no bottom price. Why should we buy today, if tomorrow, somebody will offer a lower price?” Kiriyenko said.
The breakup between the two firms led market players to believe that potash prices will fall to U.S. $300 per tonne from the current $400 per tonne and the world’s production of the fertilizer will increase.
“Uralkali’s message was addressed to us. It counted on us to start dumping prices, but we are not doing it,” Kiriyenko said. “When we are told that Uralkali offers lower price, we say: ‘Go to them.”
Uralkali’s influence on the market is highly exaggerated, Kiriyenko said, adding that he does not agree with Uralkali’s price forecast and expects potash fertilizer prices to fall no lower than. $300 per tonne.
Belarus is considering the option of filing suits against Uralkali to contest its negative actions toward the Belarusian Potash Company.
Russian managers working with Belarusian Potash Company transferred several contracts from the company to Uralkali-Trading and sent letters to several clients with notifications about the breach of the contract.
“A group of lawyers is already considering these issues from the national and international legal point of view,” Kiriyenko said.