Belarus does not care about sanctions and opens potash mine

Belarussian state-owned company Belaruskali continues to expand mining activities despite Western sanctions. President Alexander Lukashenko opened a new potash mine near the city of Petrikov last Friday (August 27).

Belaruskali is running at full capacity and is struggling to keep up with the increased demand for potash on the world market. In the first half of 2021, 13,15 million tons of potash ore was mined. Over the same period last year, this was 11,5 million tons. The company is now approaching maximum production capacity, but wants to expand further and increase the maximum capacity to more than 2025 million tons by 15.

Fertilizer is still necessary
"We are developing this potash mine not only for ourselves, but also for the world as a whole and also for our neighboring countries," Lukashenko said during the opening, according to Belta news agency. "Our neighbor Ukraine was and will remain the breadbasket of the Soviet Union. It needs large amounts of fertilizer for that." In total, Belarusian fertilizer exports increased by 2021% in the first half of 21,7 compared to a year earlier. The export of potash grew by 21,8%, of NPK fertilizers by 12,1% and that of slurry by 28,5%. Belarus has approximately 20% of the world potash market and is one of the country's main exports.

Tensions are rising
By far the largest part of the export goes through the port of Lithuania. Tensions with the West are mounting over the sanctions imposed on the Lukashenko regime and the Belarusian response to move refugees across the border into the EU. That is why the president has launched a charm offensive towards international relations such as India, China and Brazil, to show that Belarus is and will remain a reliable partner. On the other hand, it is a signal to the EU and the US that there are more markets for potash, for example the CIS countries.

Jurphaas Lugtenburg

He is a market specialist in grains and other agricultural commodities at DCA Market Intelligence. He also focuses on onions, potatoes, and roughage. Jurphaas also runs an arable farm in Voorne-Putten (South Holland).

j.lugtenburg @boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.