MUMBAI: India plans to buy 1 million tonnes of potash from Belarus in the first such bilateral deal between the two countries after sanctions crippled Minsk’s ability to sell the crop nutrient, two Indian officials involved in the discussions told Reuters.
The state-run Belarus Potash Company (BPC) could open a rupee account with a state-run Indian bank for potash sales as sanctions imposed by the United States and European Union cut off the Minsk from dollar and euro trade, the officials said.
BPC is the export arm of Belaruskali, the world’s second-largest potash producer. The US blacklisted Belaruskali and added BPC to its sanctions list as the West escalated punitive action against Belarus President Alexander Lukashenko.
BPC did not respond to a request for comment.
Potash exports are a key foreign currency earner for Minsk.
“We are not able to make payments in dollars or euros because of the sanctions. We need to import potash and we are finding options to make payments,” said a senior Indian official involved in the negotiations with Belarus.
India could buy 1 million tonnes of potash in 2022 from BPC by paying with rupees, said another official, who also declined to be named because of the sensitivity of the matter. Both said the deal could be sealed in February.
New Delhi has made rupee payments to Iran for crude oil after the US imposed sanctions on Tehran, which used the rupees to buy rice and other goods from India.
India secures nearly all its potash through imports, and historically about one-fifth of the 4 million to 5 million tonnes it imports annually comes from Belarus.
Minsk could offer a discount over benchmark prices as India has proposed buying at least 1 million tonnes of potash, the first official said.
India’s exports to Belarus were $62.3 million in the 2020/21 financial year, while its imports stood at $107.4 million, government data showed.
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