China's share of white potassium deposits

The Russian media quoted Belarusian sources as saying that Belarus’s largest potash company is negotiating with China and selling part of the company’s shares to China.

At present, Belarus has faced a serious economic crisis in the near future. President Lukashenko made a loan request to Russia. The Russian government has agreed to lend to Belarus, and Belarus has tried to sell the potash giant’s shares to China. Prior to this, Russia had expressed its desire to purchase the shares of the company but it was rejected by Belarus. However, since last year, the progress of negotiations between Belarus and China has also become slow.

The Belarusian potash fertilizer company is one of the world's major potash fertilizer producers. It is mainly controlled by the Russian potash giants Ural Potash Corp. and the Belarusian State Company, which accounts for 30% of the world's potash fertilizer market and is one of the major sources of potash fertilizers imported from China. Belarusian President Lukashenko said at the government’s economic work conference in January that the White Russian government was prepared to sell 25% of the Potash Corp’s shares in exchange for nearly 10 billion U.S. dollars to ease the government’s financial crisis. From the beginning of last year, China was very interested in buying the company’s shares, and the negotiations between the two sides are proceeding.

Interviewed with the domestic potash industry, he said that the progress of the current negotiations is very slow, and there are three variables for China’s participation in the Belarusian potash fertilizer company: first, China cannot accept the price proposed by Belarus, that is, the value of the shares is approximately US$30 billion. Belarus clearly will not make concessions. Lukashenko once said that in view of the current crisis in the world grain market, do not rush to sell these companies because their share prices have been rising along with economic development. Second, the White Russia government has kept the shares of the most profitable companies in its hands as much as possible, but given the current financial crisis and foreign exchange shortages, it has to be sold. In fact, China cannot obtain control of the company. After the acquisition is successful, it may only receive dividends every year. Thirdly, as early as last August, there were rumours that Chinese companies were bidding for Belarus Potash Fertilizer Company. However, domestic companies were afraid that Belarus was not a market economy country. After spending huge amounts of money, the political risk was greater, and the potash fertilizer company controlled by the White Russia government was under control. The right will not fall by his hand.

It is said that on the eve of the Russian-K merger, Chinese companies intending to take over this part of the shares will help accelerate China's pace of going out to find potash, but the industry believes that this will not have any impact on China's recent negotiations on the nature of potash fertilizer imports. Therefore, whether or not the domestic purchase of shares of Baizha Potash Corp has significant changes.

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