Russia Oil and Gas, Uralkali
The Uralkali’s Board of Directors has recommended the annual general meeting of shareholders not to pay dividends for 2016.
In 2016, Uralkali produced 10.8 million tons of potassium chloride compared to 11.4 million tons in January - December of last year, the company reports. The decline amounted to 5.3% in 2016.
Onexim of Mikhail Prokhorov has sold 20% of Uralkali. Buyer, contrary to the market expectations, wasn’t Uralchem, which owns 20% of Uralkali, but Belarusian trader Dmitry Lobyak, who is familiar with owner of Uralchem Dmitry Mazepin. The market doesn’t rule out the possibility that the transaction may contribute to the restoration of relations with Minsk, ruptured in 2013.
Onexim has closed a deal on sale of 20% of Uralkali to a structure of the Belarusian businessman Dmitry Lobyak. The transaction amount isn’t disclosed, but a source of the Kommersant, familiar with the situation, notes that it was signed with a substantial premium to the market (the package price on the Moscow stock exchange is about $2 billion). The Mikhail Prokhorov’s purchase of the package in Uralkali was estimated at $4 billion in late 2013, then he bought 28.5% of the company, but sold some shares during buyback, reduced the stake to 20%. 19.9% more of Uralkali belong to Uralchem, the remaining shares are quasi treasury ones.
The largest Russian producers of nitrogen and potash fertilizers Uralchem and Uralkali have asked the Government to cancel the increased tariff for export rail transportation. Allowance of 13.4% was introduced in late 2014 and was compensated for exporters with the weakening of the ruble. But since then, the price of fertilizers fell by 40-50%, while the share of transport costs in the expenditures increased significantly. It will be difficult for Russian Railways to refuse, because the monopoly has already made similar concessions to coal and ferrous metals producers.
As the Kommersant has got to know, on Friday, the producers of mineral fertilizers Uralkali (the largest shareholders are Uralchem and Onexim) and Uralchem (the main owner is Dmitry Mazepin) sent a letter to the Deputy Prime Minister Arkady Dvorkovich about railway tariffs. The companies ask the Government to cancel the additional indexation of Russian Railways in the amount of 13.4% on export rail transportation of fertilizers and ammonia. The chemical companies insist on the monopoly doesn’t require conservation in traffic at the level of 2015, since the demand for fertilizers is seriously reduced. As sources on the market reported to the Kommersant, a similar letter to the Government will by sent by the Russian Association of producers of mineral fertilizers this week. Russian Railways doesn’t comment on the situation.
Moscow and Minsk again have a common potash project.
Two years after the breakup of "Uralkaliy" and "Belaruskaliy" the latter found a new Russian partner - Mikhail Gutseriev. He promises to invest about $ 1.7 billion in construction production of 2 million tons of fertilizers per year in Belarus. Minsk is ready to support the project, including a joint trading with "Belaruskaliy". However, additional capacities may be unclaimed on the background of the economic problems in major consuming countries.