Uralkali (LSE:URKA, “the Company”) announces that it has paid premiums of RUB 457 million (approximately USD 14.3 million) to Russian compound fertiliser (NPK) producers following the delivery results in Q2 2012.
The premium mechanism is provided by Uralkali’s Marketing Policy which was previously approved by the Russian Federal Antimonopoly Service. It allows NPK producers to buy KCL for the production of fertiliser intended for use in the domestic market on the same favourable terms offered by the Company in relation to its direct sales to domestic agricultural producers. The structure is designed to encourage growth of compound fertiliser supplies in the domestic market and support agricultural producers.
In Q1 2012 Uralkali paid premiums of RUB 405 million (approximately USD 12.8 million) to Russian NPK producers.