BPC indicates that EU ban does not cover most MOP

Belarusian Potash (BPC) is confident that an EU ban on MOP from Belarus does not extend to all types of the product.

The EU has published details of regulations that prohibit imports from Belarus of MOP and any other fertilizers that contain it, after finalising the legal process to impose further sanctions against the Belarus government.

But uncertainty has since gripped the market as to whether all types of MOP are covered by the regulations.

The EU's official journal specifically listed MOP with, firstly, a K20 content not exceeding 40pc by weight, and secondly, a K20 content exceeding 62pc by weight. But if restricted to those parameters, the regulation would not cover most of the MOP exported by BPC, which markets product from producer Belaruskali.

"The document indicates two of the three codes of products that we sell," BPC was quoted as saying by Belarusian state-owned news agency Belta.

"Every type of product is important for us, regardless of the export volumes, just as parents love their children regardless of age or status. We will continue to work within the existing framework, making every effort to fulfil our obligations to our partners," it added.

One market participant said it would be surprised if the regulation was not intended to extend to all types of MOP, but another suggested the possibility that the EU has made the decision to allow the most common form of the product to pass in the interests of food security. All market participants that Argus discussed the matter with expressed uncertainty. Argus is awaiting an EU response to a request for clarification.

Belarusian MOP is shipped from the Baltic Sea port of Klaipeda, which is in EU member state Lithuania, to destinations around the world.

Belarus is among the world's largest and most important producers of potash. Parts of the global market were effectively placed on hold by the prospect of sanctions, as suppliers withdrew offers, awaiting details from the EU to emerge.

By David Maher