Pursuant to the terms and conditions of the agreement between the Russian Association of Fertilizer Producers and the Agri-industrial Union of Russia, Uralkali (Berezniki, Perm Territory) announces the ceiling price for its potash fertilizers to be supplied directly to Russian agricultural producers in the first half of 2011. Uralkali has decided to keep its price at the same level as in the second half of 2010 for muriate of potash (MOP) intended for Russian agricultural producers, namely 4,250 rubles per tonne (FCA, exclusive of VAT, exclusive of packaging), which is substantially lower than the potash price in the global market.

In a move to support Russian agriculture for a period of springtime operations in the fields, Uralkali decided in March 2010 to cut the MOP price for Russian agricultural producers from 4,550 to 4,250 rubles per tonne (FCA, exclusive of VAT, exclusive of packaging), effective until the end of the first half of 2010. Later, the company decided to keep the reduced price unchanged for the agricultural sector in the second half of 2010.

Pavel Grachev, President and CEO, Uralkali:
“We decided to keep the reduced price unchanged for agricultural producers as part of Uralkali’s efforts to support the development of Russian agriculture. It has been a tough year for Russian agriproducers, and we view these measures as our contribution to the recovery of domestic agriculture. The company is determined to keep on providing Russian agricultural producers with its assistance on a systemic basis in the future.”

Background information:
The agreement aimed at satisfying Russian agricultural producers’ demand for mined fertilizers in 2008–2012 was signed by the Russian Association of Fertilizer Producers and the Agri-industrial Union of Russia on October 17, 2008. The agreement specifies that Russian manufacturers of mined fertilizers should announce their prices for agricultural producers twice a year.