China Investment Corp. has converted loans into 12.5 per
cent of the shares of Russia’s potash-mining giant Uralkali.
Some stock-market analysts are predicting that the deal will
lower the price Canadian potash exporters will be able to charge for potash.
China is among its largest customers.
Urakali shares are for sale because Belarus says it won’t
revive an export cartel with Uralkali, nor will it release the company’s chief
executive officer, Vladislav Baumgertner, unless and until Suleiman Kerimov
sells his 21.75 per cent stake in Uralkali.
Belarus says Baumgertner used his position as head of the
cartel to favour Kerimov and Uralkali.
About 12 per cent of Belarus’s revenues come from potash
exports.
Since the cartel collapsed in June, global potash prices
have been declining.
In addition to China’s purchase, there are rumours that
Onexim, controlled by Michael Prokohorov, is making a bid to buy Kerimov’s
shares.
