Belarus won’t pledge Belaruskaliya bonds in exchange for Russian credit

Belarus does not agree on pledging 35% of Belaruskaliya shares in exchange for 2 billion dollars credit from Russian banks: Syberbank and Deutsche Bank, informed Valery Kiriyenka – president of one of the biggest in the world potassium fertilizers producers.

„I am confident that our government will not agree on selling the company on terms proposed by the Russian side. It’s not that bad, and Belaruskaliya has good prospects. There will be always a demand for potassium.” – said Kiryienka.

Belarusian economist, Vasyl Shlyndzikav thinks it was a right decision. – You cannot sell Belaruskaliya. This is the only properly functioning company here. Selling it, especially to the banks, would mean a serious loss for our nation. – said the economist.

Shlyndzikav thinks that the credits from Russian banks would not solve the problems in Belarus. “Money could have helped in stabilizing the economy, but only for few months. After that, everything would have started all over again. Belarus needs now major economic reforms.” – he added.

Belaruskaliya is a state-owned company, a leader in the world potassium industry. The company controls 30% of the world’s potassium fertilizers market. President Lukashenka estimated that the 35% of shares would cost 7 billion dollars. Belarus has committed to privatization worth 2.5 billion dollars this year, in exchange for a credit from the Eurasian Economic Community. According to the same agreement, Belarus should conduct privatization worth 7.5 billion dollars before end of 2013.


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