Uralkali announced yesterday it has received funding and insurance coverage for two vertical potash shafts at the Ust-Yayvinsky potash mine. The political and commercial risks of the Facility are covered by Euler Hermes, the official German export credit agency and the world’s leading provider of trade and export related credit insurance.
Viktor Belyakov, acting Uralkali CEO, commented, “Our first ECA-backed facility confirms the ability of the Company to raise financing from the leading European banks, while the cover of Euler Hermes demonstrates the support of Uralkali’s strategy by international financial institutions. This deal further diversifies Uralkali's loan portfolio and prolongs its average maturity.”
The move comes as rumors of aggressive oversupply and a price-over-volume approach fade from headlines. As Uralkali looks to normalize operations without former partner Belaruskali, the 171.4 million Euro loan not only will encourage future production but also serves to nurture relations between Russia and the European Union.