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Uralkali

March 20, 2008

BPC and IPL of India have reached an agreement on the price and volume of MOP

BPC (Uralkali's export trader and a 50% joint venture with Belaruskali) has informed Uralkali of an agreement reached on March 20, 2008 with IPL, India's largest importer of mineral fertilizers, on the price and volume for the supply of potassium chloride (MOP) in 2008-2009. The price for sales to IPL has been set at $625 per tonne of MOP, which is $355 per tonne higher than the price for sales to IPL set in June, 2007. The new price has been established for shipments from May 2008 until March 2009.

BPC's agreement with IPL is for the shipment of 750,000 tonnes of potassium chloride (MOP). Uralkali's portion of these deliveries will be determined in accordance with the budget agreed with Belaruskali.

BPC believes that settlement with IPL equally benefits both parties: BPC will strengthen its leading positions at the Indian potash market and IPL will secure the long term supply agreement amidst continuous tightening of MOP global supplies. The successful result of its negotiations with IPL proves the commitment of the company for uninterrupted supplies to India as a key consumer market.

 

 

 

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