Belgium is seeking a loosening up of the European Union (E.U.) sanctions on Belarus’ potash industry in a bid to ease the difficulties it claims companies within the European bloc face in implementing the measures.
According to a Bloomberg report, diplomats in Brussels have written to other E.U. Member States asking for changes to the potassium content of Belarusian potash and other fertilizer imports covered by the E.U. sanctions that were implemented on Belarus in June (GM June 25, p. 1)
Belgium is reportedly proposing that the E.U. allow for a deviation of as much as 2 percent from currently permitted levels of potassium content in the Belarusian potash the European bloc imports.
The sanctions imposed in June by the E.U. prohibit the import into Member States of Belarusian potassium chloride with “a potassium content evaluated as K2O, by weight, not exceeding 40 percent on the dry anhydrous product,” and potassium chloride with “a potassium content evaluated as K2O, by weight, exceeding 62 percent on the dry anhydrous product,” as well as Belarus NPK fertilizers.
However, the E.U. did not include in its list of potash to be sanctioned, “potassium chloride with a potassium content evaluated as K2O by weight, exceeding 40 percent but not exceeding 60 percent on the dry anhydrous product.”
This latter grade is one of Belarus’ key potash export products, and accounts for about 80 percent of Belarus’ potash supplies to the E.U. The sanctions cover a transit ban via E.U countries; most of Belarus’ potash is transhipped via Lithuania for export at the country’s port of Klaipeda.
Bloomberg, citing the diplomats’ letter, reported the diplomats argue that sanctions imposed on Belaruskali OAO in June have caused an “implementation problem” for E.U. companies and the “potash sector should not be singled out.”
According to the letter, a large Belgian company that supplies water to cities is facing customs issues because the grade of potash it was importing was at times higher than is allowed by the E.U. under the sanctions. Other firms are also facing similar problems, and there are concerns that if European companies are forced to source potash supply from elsewhere it could led to price spikes, the letter indicated,
Bloomberg, citing a separate document, reported that more than one E.U. Member State is backing the request to amend the potassium levels in Belarus potash under sanction, ahead of a meeting of the bloc’s diplomats this week.