Uralkali CEO Vladislav Baumgertner Detained In Belarus Reports
Uralkali CEO Vladislav Baumgertner Detained In Belarus Reports
Posted on August 26, 2013 by Asher Berube August 26, 2013 (Source: WSJ) — The chief executive officer of Russian potash producer Uralkali (URKA.RS) was taken into custody in Belarus on criminal charges Monday, the Belarussian state news agency reported. Vladislav Baumgertner was detained for “abuse of power for private gain,” in his role as the chairman of the Supervisory Board of the Belarusian Potash Co., or BPC, which served until recently as a trade partnership between Uralkali and Belaruskali to market potash globally, the Belta news agency reported. The report, citing the country’s Investigative Committee, said Mr. Baumgertner had caused “substantial harm to the state and the public interests of Belarus,” as well as damage to state-run potash miner Belaruskali. On June 30, Mr. Baumgertner announced that Uralkali was severing its relationship with BPC effectively ending a global pricing cartel in a move that sent potash company stocks plunging around the world. A spokeswoman for Uralkali had no immediate comment and officials with Belarus’ Investigative Committee, the body that has opened the criminal probe, could not immediately be reached for comment. Belta also reported that four other officials from BPC were wanted and that Interpol had been informed. For years, a majority of the world’s potash–a potassium-based fertilizer ingredient that strengthens plant roots–has been sold through two marketing groups: BPC, and North America’s Canpotex. The two traders have set identical prices in major markets such as India and China, operating what some customers say is a cartel similar to the exclusive diamond trade. The companies have denied they operate as cartels in the past. Last week, the head of Belaruskali, Valery Kiriyenko, called Uralkali’s decision “ill considered” and “unprecedented.” Potash exports amount to roughly 2% of Belarus’ gross domestic product. - See more at:
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