European leaders are discussing “targeted economic sanctions”. The potash industry can be chosen due to the fact that state-owned enterprises are the most active in it. 

Potash fertilizers are the main export of Belarus, providing a significant share of the demand of European countries, as well as an inflow of foreign exchange earnings for the country. 

State the enterprise "Belaruskali" is one of the world leaders in the production of fertilizers. Last year, it accounted for 8.3% of all Belarusian exports, and revenue amounted to $ 2.4 billion. Export duties and taxes "Belaruskali" is 8-10% of the total budget of Belarus. 

A complete ban on European companies doing business with Belarusians could lead to a short-term surge in prices for potash fertilizers in Europe, since Belarus provides about 25% of regional demand. 

Much will depend on the nature of the sanctions: if the Belarusian potash industry is limited by loans in European banks, then this will not cause any particular obstacles in the market, as Belarus can use alternative sources of financing. However, more serious measures, for example, a ban on European companies from trading with Belarusian producers of potash fertilizers, will have more significant consequences. 

The EU is already working to add persons involved in the Ryanair incident to the sanctions list. It is assumed that the list will be approved on June 21. 

The world is becoming more and more global, trading operations of commodity markets that have come under the sanctions of certain countries will surely open up new markets for themselves and will be built into logistics supply chains in new routes, Iran is an example of this.

Source of article: agrotrade.club

Picture: hk.livejournal.com