Riga, Latvia — Russian potash producer Uralkali has registered its subsidiary, Uralkali Trading, in Latvia, according to the news agency Interfax, citing information on the database of Latvia’s information services provider Lusoft. The Uralkali subsidiary, through which Uralkali exports its potash, was registered on July 15 with a share capital of €2 million ($2.2 million). Uralchem, which holds a 19.99 percent stake in Uralkali, owns a trading company in Latvia – SIA Uralchem Trading (Latvia) – and a controlling share (51 percent) in the 2 million mt/y Riga Fertilizer Terminal. Uralchem owner Dmitry Mazepin, who is also co-deputy chairman of Uralkali, is reported to be seeking a merger with Uralkali, according to Russia’s Vedomosti newspaper, and is said to be in talks with lender VTB for a reported $1.5 billion loan to finance the purchase of Onexim Group’s stake (20 percent) in the potash company (GM July 20, p. 15). According to an analyst who did not want to be identified, this latest move by Uralkali is another signal that the potash producer is moving in the direction of a merger with Uralchem. It could also be interpreted, he said, as a possible early preventative move by Uralkali to cushion itself against any potential U.S. sanctions. Last week, a bill was introduced in the U.S. House seeking to reinforce U.S. sanctions against Belarus, specifically targeting Belaruskali and its trading company Belarus Potash Co. (GM July 20, p. 1). U.S. and EU sanctions already are in place against certain Russian individuals and businesses in response to the conflict in Ukraine.
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