Uralkali might cancel premiums for Russian producers of complex fertilizers
MOSCOW. Sept 11 (Interfax) - OJSC Uralkali might halt payments of premiums to Russian producers of complex mineral fertilizers, the company's CEO, Vladislav Baumgertner, said at a press conference on Tuesday.
Uralkali currently delivers its potash to Russian agricultural producers on a preferential basis. Raw materials for Russian producers of complex mineral fertilizers are supplied under similar terms on the domestic market. However, Baumgertner said that the price for complex fertilizers in Russia is now practically at the world level. "Therefore, the premiums, which are paid [to producers of complex fertilizers], are sinking in the accounts of our partners," he said.
As a result, the company is thinking of revising the terms for supplying potash to Russian producers. This would mean the cancellation of premiums for these enterprises, Baumgertner said.
