Potash buyers fretting over U.S. sanctions on Belarus’s state-owned producer, which controls about a fifth of the global market for the crop nutrient, might not need to panic right away.
The penalties announced on Monday target Belaruskali OAO, which ships much of its products to China, India and Latin America, along with more than a dozen companies with ties to President Alexander Lukashenko.
Yet Belarusian Potash Co., in which Belaruskali owns a 48% stake and which is the sole handler all of the country’s potash exports, wasn’t included in the sanctions list.
While some buyers may turn to other suppliers following the sanctions, China and India might still feel it’s safe to purchase from BPC, the company that signs export deals, according to VTB Capital.
The U.S. issued licenses allowing counterparts to wind down transactions with Belaruskali — or any entity in which it owns at least a 50% interest — by Dec. 8, giving consumers time to find alternative supplies.
For the rest of this article: https://www.bloomberg.com/news/articles/2021-08-10/u-s-sanctions-on-belarus-potash-leave-out-nation-s-sole-seller