The Russia-Belarus potash cartel may soon be back in
business as both made steps to patch up differences this week.
Belarus released Uralkali’s chief executive officer,
Vladislav Baumgertner, to Russian officials. Belarus arrested him on charges
that he used the cartel, which he operated, to the advantage of Uralkali and
short-changed Belarus.
The Russians have agreed to investigate Baumgertner when he
returns.
For its part, the Russians’ investor, Suleiman Kerimov, says
he has made a deal to sell his 21.75 stake in Uralkali.
When the cartel split apart, both began discounting potash
prices and that had a global impact, including those with huge mines in
Saskatchewan.
The three main miners in Saskatchewan – Potash Corp. of
Saskatchewan, Mosaic and Agrium – run their own export cartel, called Canpotex.
It has government approval because the Saskatchewan
government then realizes higher revenues from royalties.
The Uralkali-Belarus cartel controlled about 40 per cent of
the global market and Canpotex most of the rest of the $20-billion-a-year
market.
