Trump Prepares “Massive Deal” with Belarus on Potash Supplies
Economy
US President Donald Trump has announced preparations for a “massive deal” to purchase potash from Belarus. According to Trump, Belarusian potash could be priced significantly below what Washington currently pays Canada, the main supplier of potash to the United States.
“The pricing would be substantially less than we are currently paying to Canada. Very good news for our farmers and ranchers,” Trump wrote on Truth Social. He did not disclose the expected volumes, delivery schedule or value of the potential contract.
Potash is used to produce mineral fertilizers. It helps improve plants’ resistance to disease, crop quality and yields. Canada supplies the overwhelming majority of US potash imports.
Trump’s announcement affected fertilizer producers’ shares. During trading, US-based Mosaic fell by more than 5%, Canada’s Nutrien by about 4%, Intrepid Potash by 4.5% and CF Industries by around 3%. Losses in some stocks narrowed by the close.
Belarus announced on September 11 that it had resumed exports of potash fertilizers to the United States after Washington lifted its restrictions. President Alexander Lukashenko said the first shipment was being prepared, while noting that available volumes were limited because much of Belarusian production had already been contracted to other buyers.
Lukashenko also demanded the release of more than $40 million in Belarusian funds held in the US banking system. He said the money was “stuck” at Citibank. The issue was discussed during talks with US presidential envoy John Coale.
Logistics remain a challenge. After Lithuania closed access to the port of Klaipeda, Belarusian potash has to be shipped through Russian ports, including those in the Arctic. The longer route and Atlantic transportation could reduce its price advantage over Canadian supplies, which reach the US directly by rail.
Saskatchewan Premier Scott Moe described potential Belarusian supplies as “blood potash.” Lithuanian Foreign Minister Kęstutis Budrys said the European Union should not ease sanctions against Minsk.
US restrictions on Belarusian potash have therefore been lifted, while European sanctions and restrictions on transit through Klaipeda remain in place.
Potash is used to produce mineral fertilizers. It helps improve plants’ resistance to disease, crop quality and yields. Canada supplies the overwhelming majority of US potash imports.
Trump’s announcement affected fertilizer producers’ shares. During trading, US-based Mosaic fell by more than 5%, Canada’s Nutrien by about 4%, Intrepid Potash by 4.5% and CF Industries by around 3%. Losses in some stocks narrowed by the close.
Belarus announced on September 11 that it had resumed exports of potash fertilizers to the United States after Washington lifted its restrictions. President Alexander Lukashenko said the first shipment was being prepared, while noting that available volumes were limited because much of Belarusian production had already been contracted to other buyers.
Lukashenko also demanded the release of more than $40 million in Belarusian funds held in the US banking system. He said the money was “stuck” at Citibank. The issue was discussed during talks with US presidential envoy John Coale.
Logistics remain a challenge. After Lithuania closed access to the port of Klaipeda, Belarusian potash has to be shipped through Russian ports, including those in the Arctic. The longer route and Atlantic transportation could reduce its price advantage over Canadian supplies, which reach the US directly by rail.
Saskatchewan Premier Scott Moe described potential Belarusian supplies as “blood potash.” Lithuanian Foreign Minister Kęstutis Budrys said the European Union should not ease sanctions against Minsk.
US restrictions on Belarusian potash have therefore been lifted, while European sanctions and restrictions on transit through Klaipeda remain in place.
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