Russian tycoon Kerimov becomes second ‘Potash War’ target
The Belarusian Investigative Committee filed a criminal case
against Kerimov for "abuse of power and office".
Russia’s potash tycoon could face up to 10 years behind
bars, with his assets and property confiscated, the Belarusian
state news agency Belta reported. Belarus officials have added
him to Interpol’s wanted list.
“The protection of Russian business interests has always been
a priority,” Dmitry Peskov, President Putin’s spokesperson,
told Kommersant FM in response to the warrant against Kerimov.
“The situation and the circumstances need to be clarified, and
we need more detailed information about the charges against
Kerimov before we can fully give any assessment,” Peskov
Belarusian investigators said they have grounds to open a
criminal investigation into Kerimov last
Kerimov is believed to be in the Russian
Federation. Belarus officials have also issued arrest warrants
for 4 other top Uralkali executives.
Uralkali CEO Vladislav Baumgertner was charged and detained in Belarus on similar
charges on August 26, after he visited Belarus at the invitation
of Prime Minister Mikhail Myasnikov. He is being held in a
KGB jail in Minsk, reportedly in solitary confinement.
Gavriil Mamontov, a diplomat at the Russian embassy in Belarus,
visited Baumgertner on Friday.
Uralkali CEO and Kerimov are being criminally pursued for the damage they allegedly caused when Uralkali unilaterally pulled out of a trade agreement with its Belarusian fertilizer partner on July 30 , breaking up its world-wide pricing consortium overnight and causing potash stocks to crash.
The break-up of the price cartel with Belaruskali cost Kerimov an estimated $375 million, and sent Uralkali capitalization down to its lowest since November 2008.
Potash is a key ingredient in fertilizer used by farmers, and previously was Belarus most profitable venture, accounting for 20 percent of government revenue. In 2012, Belaruskali revenues were $2.14 billion, according to Belarusian Ministry of Finance data.
Earlier last week Belarus Potash Co ‘Belaruskali’ announced it
will suspend two of its four production sites due to the
‘difficult situation on the market’, Antoly Makhlai told
Russia has demanded Baumgertner's release from the soviet-style
detention center in Minsk. Belarus’s refusal has prompted
coercive trade tactics from Moscow, including bans on pork and
milk products from Belarus.
Trade relations between the two neighbors have been rocky since
the dissolution of the Soviet Union and Aleksandr
Lukashenko’s ascension to the presidency.
Russia imposed a ban on dairy products in 2009 and crude oil was
cut in 2007 by Moscow because Belarus was siphoning off oil