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Uralkali

March 19, 2008

Russian Government introduces export duties for potassium fertilizers

The Government of the Russian Federation is introducing duties on exports of
potassium chloride destined for countries outside the CIS members of the customs
union with the Russian Federation. The duty applicable to Uralkali's potassium
chloride is 5% of the declared customs value, which Uralkali expects to be
charged on almost all of Uralkali's potassium chloride exports.

Resolution No 159 dated March 11, 2008 (the "Export Duties Resolution"), which
introduces the export duties, becomes effective one month following its official
publication and is effective until April 30, 2009. The Export Duties Resolution
imposes higher duties of 8.5% on exports of certain other types of fertilizers,
such as nitrogen fertilizers and fertilizers containing two or more of potassium
chloride, nitrogen and phosphorus.

Uralkali does not expect the Export Duties Resolution to have a materially
adverse impact on its business, prospects, financial condition or strategy.
However, Uralkali expects the Export Duties Resolution to be an additional
factor affecting prices of potassium chloride in the international market.

 

 

 

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