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Uralkali ( rus, Уралка́лий, p=ʊrɐɫ'kalʲɪj) is a Russian
potash Potash ( ) includes various mined and manufactured salts that contain potassium in water- soluble form.
fertilizer producer and exporter. It is traded on the
Moscow Exchange The Moscow Exchange (MOEX; , ) is the largest exchange in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market, money markets, and precious metals. The Moscow Exchange also operates Russia's central secur ...
using the symbol, URKA. The company's assets consist of five mines and seven ore-treatment mills situated in the towns of Berezniki and
Solikamsk Solikamsk (, , also Соликамскӧй, ''Sovkamsköy'') is a town in Perm Krai, Russia. Modern Solikamsk is the third-largest town in the krai, with a population of History The earliest surviving recorded mention of Solikamsk, initially a ...
(
Perm Krai Perm Krai (, ; ) is a federal subjects of Russia, federal subject of Russia (a Krais of Russia, krai), located in Eastern Europe. Its administrative center is Perm, Russia, Perm. The population of the krai was 2,532,405 (2021 Russian census, 2021 ...
,
Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...
). Uralkali employs about 12,000 people (in the main production unit). The company’s production facilities are located in the cities of Berezniki and Solikamsk in Perm Krai, with its headquarters situated in Berezniki. Following the acquisition of OAO Silvinit in 2011, Uralkali became the sole producer of potash fertilizers in Russia. The company produces standard and granular
potassium chloride Potassium chloride (KCl, or potassium salt) is a metal halide salt composed of potassium and chlorine. It is odorless and has a white or colorless vitreous crystal appearance. The solid dissolves readily in water, and its solutions have a sa ...
(KCl), sodium chloride (
NaCl Sodium chloride , commonly known as edible salt, is an ionic compound with the chemical formula NaCl, representing a 1:1 ratio of sodium and chloride ions. It is transparent or translucent, brittle, hygroscopic, and occurs as the mineral hali ...
in the form of
halite Halite ( ), commonly known as rock salt, is a type of salt, the mineral (natural) form of sodium chloride ( Na Cl). Halite forms isometric crystals. The mineral is typically colorless or white, but may also be light blue, dark blue, purple, pi ...
), and carnalite. It supplies products (through its own trader Uralkali Trading) to over 60 countries, with the major markets including Brazil, India, China, Southeast Asia, Russia, USA, and Europe. In 2018 Uralkali produced 11.5 million tonnes of potash (KCl) In 2021, the company's revenue amounted to 269 billion rubles. Uralkali develops Verkhnekamskoye field of potassium and magnesium salts, world's second largest in terms of potash ore reserves. The company's total ore reserves total approximately 8.2 billion tonnes. Uralkali holds the development licences for the Ust-Yayvinsky and Polovodovsky blocks at the Verkhnekamskoye field, which contain ore reserves of 1.291 and 3.074 billion tonnes respectively. Uralkali also holds the development licence for the Romanovsky Block of the Verkhnekamskoye deposit with the estimated reserves of 385 million tonnes of sylvinite ore.


History

*1934 - Start of construction. *1944 - Start of carnallite production. *1954 - Launch of the first mine group with the annual capacity of 266,000 tonnes. *1964 - Establishment of the Uralkali production association. *1968 – Start of construction of the second mine group. *1970 - Launch of the second mine group. *1974 - Launch of the third mine group. *1987 - Launch of the fourth mine group. *1993 - Start of privatization of the Uralkali production association and its transformation into OJSC Uralkali. *2001 – Construction completion of the Baltic Bulk Terminal. *2006 - Shutdown of the first mine group. *2007 - Uralkali places its global depositary receipts at the London Stock Exchange. *2011 - Merger of OJSC Uralkali and OJSC Silvinit. *2014 - Purchase of a license to develop the Romanovsky site of the Verkhnekamskoye deposit. *2015 - Delisting of Uralkali GDRs from the London Stock Exchange. *2021 - Uralkali becomes the title sponsor of the
Haas F1 Team Haas Formula LLC, competing as MoneyGram Haas F1 Team, is an List of Formula One constructors#Team's nationality, American-licensed Formula One racing team established by NASCAR Cup Series team owner Gene Haas in April 2014. The team made its ...
. *2022 - Haas F1 Team cuts ties with Uralkali.


Recent news

In December 2010, Uralkali announced plans to buy another Russian potash producer Silvinit; together they would form one of the world's largest potash producers. The merger was finalized in June 2011, with the combined Uralkali accounting for about 20% of the world's potash production. On 9 November 2012, Chengdong Investment Corp., a unit of the
sovereign wealth fund A sovereign wealth fund (SWF), or sovereign investment fund, is a state-owned investment fund that invests in real and financial assets such as stocks, Bond (finance), bonds, real estate, precious metals, or in alternative investments such as ...
China Investment Corporation China Investment Corporation (CIC) is a sovereign wealth fund that manages part of China's foreign exchange reserves. China's largest sovereign fund, CIC was established in 2007 with about US$200 billion of assets under management. In Mar ...
, bought bonds from the shareholders with maturation in 2014 which were exchangeable into a stake in Uralkali. Chengdong would be able to convert its investment into a 12.5 percent stake in Uralkali's ordinary shares. In September 2013, the bonds were converted and CIC thus acquired a 12.5% stake in the firm, rumoured to be worth around $2 billion. In June 2012, Green Patrol, a Russian environmental non-governmental organization, listed Uralkali as one of the top 100 polluters in Russia, based on information gathered during the previous years. An expedition organised into the
Perm Krai Perm Krai (, ; ) is a federal subjects of Russia, federal subject of Russia (a Krais of Russia, krai), located in Eastern Europe. Its administrative center is Perm, Russia, Perm. The population of the krai was 2,532,405 (2021 Russian census, 2021 ...
by Green Patrol in 2010 revealed that Uralkali's sinks contained at least 16 harmful elements (including zinc and ammonium), exceeding the maximum permissible levels by 1,850 times. Furthermore, according to Green Patrol's President Roman Pukalov, Uralkali failed to fully disclose a complete list of harmful elements that it routinely rejected into the local river
Kama ''Kama'' (Sanskrit: काम, ) is the concept of pleasure, enjoyment and desire in Hinduism, Buddhism, Jainism, and Sikhism. It can also refer to "desire, wish, longing" in Hindu, Buddhist, Jain, and Sikh literature.Monier Williamsका ...
. Roman Pukalov described Kama water as "very polluted", and declared that small rivers around Berezniki had in fact turned into brine, something he had "never seen anywhere else". On 30 July 2013 Uralkali announced that it was pulling out of the Belarusian Potash Company export JV with Belaruskali, through which it exported potash from 2005 to July 2013, and said it would sell the fertilizer on its own. This move sent shares of potash companies tumbling on speculation that potash prices would plunge. This dispute arose over foreign sales and top executives at Uralkali were accused of a criminal scheme. On 26 August Belarus detained the company's CEO Vladislav Baumgertner after inviting him to Minsk for talks. In September 2013 he was moved from solitary confinement and put under house arrest. Uralkali insists that persecution of its employees by Belarusian officials is politically motivated. On 14 October Russia opened a criminal investigation into Vladislav Baumgertner as well, and investigators announced they will request his extradition from Belarus. In November 2013 Vladislav Baumgertner was extradited to Russia and later put under house arrest. In September 2014 he was released on bail. In December 2013 Suleiman Kerimov sold his shares (21.75%) to
ONEXIM Mikhail Dmitrievich Prokhorov (; born 3 May 1965) is a Russian oligarchs, Russian-Israeli oligarch and politician. He was also an owner of the Brooklyn Nets. After the collapse of the Soviet Union, Prokhorov obtained Russian state-owned metal ...
Group, while Dmitry Mazepin's Uralchem acquired 19.99%, both becoming key shareholders in Uralkali. In November 2015, Uralkali's board approved its latest share buyback program, a move that was expected to result in the delisting of the company's stock in London. Uralkali, which also trades in Moscow, said it will repurchase as much as 6.5 percent of its shares from the open market by the end of March 2016. On 5 October 2016, Russian President
Vladimir Putin Vladimir Vladimirovich Putin (born 7 October 1952) is a Russian politician and former intelligence officer who has served as President of Russia since 2012, having previously served from 2000 to 2008. Putin also served as Prime Minister of Ru ...
issued an order asking the General Attorney of the Federation of Russia Yury Chaika to verify the compliance of Uralkali with the legislation governing planning works and mines filling. Results were to be presented on 1 December 2016, but as of end January 2017 the outcome of the investigation has not been published yet. In December 2021, Uralkali bought UPI Norte, Brazilian holding and shareholder of FertGrow S.A., local major distributor of fertilizers. In December 2021, Uralkali-Invest of Uralkali made a buyback of 3,4% of equity shares of Uralchem. By the beginning of 2022, the total of 22.36% of Uralkali voting shares is on the balance of Uralkali-Invest. Before in 2021, the investment division of Uralkali has also acquired 18,5% of equity capital of Uralchem from Dmitry Lobiak, Mazepin's business partner.


Owners and top management

By 2000,
Dmitry Rybolovlev Dmitry Yevgenyevich Rybolovlev (, ; born 22 November 1966) is a Russian oligarch, billionaire businessman, and investor. Rybolovlev became chairman of the Russian fertilizer producer Uralkali in 1995. In 2010, he sold his majority share of ...
gained complete control over Uralkali, consolidating over 50% of the shares. By October 2006, he became chairman of the board of directors and in June 2010 owned approximately 65.5% of the company's shares. In early 2011, Rybolovlev disposed of his shares. As of April 2011, the company was owned by the following Russian businessmen: Suleyman Kerimov (25%), Alexander Nesis (17.7%), Filaret Galchev (15%), and Alexander Mamut (3.5%), while all other shares were in free float. At the end of December 2013, 21.75% of the company's shares were held by Mikhail Prokhorov's ONEXIM Group, 19.99% by Dmitry Mazepin's Uralchem, 12.5% by the Chinese Chengdong Investment Corporation, and the rest was in free float. On 23 December 2013, Dmitry Osipov, the former deputy board chairman of Uralchem, was appointed chief executive officer of the company. As of 7 March 2018, the shareholding structure of PJSC Uralkali was as follows: 5.23% shares were in free float, 20% were owned by Rinsoco Trading Co. Limited (registered in Cyprus and controlled by Dmitry Lobyak), 20.1% belonged to Uralchem (controlled by Dmitry Mazepin), and 54.77% were quasi-treasury shares (on the balance of the subsidiary Uralkali-Technology). Vitaly Lauk was appointed as CEO of Uralkali effective 4 December 2020. Since September 2017, Vitaly Lauk has been the Technical Director and member of the management board of the company.


Operations

Uralkali develops the Verkhnekamskoye potassium and magnesium salt deposit, one of the world's largest. A substantial part of natural potassium salt is processed into a commercial product, potassium chloride, which is used as a fertiliser applied either directly to the soil or as an ingredient of compound NPK fertilisers. In addition, potash is used in other industries such as chemical, petrochemical, food, and pharmaceutical.


Performance indicators

The company accounts for a significant share of global potassium chloride production with 80% of the company's products being exported overseas. The main buyers are Brazil, India, China, Southeast Asia, Russia, the US and the EU. The company's production volume in 2020 was 11.3 million tonnes of KCl. As of late 2020, Uralkali employed about 12,700 people in the main production unit. The company's net revenue for 2020 amounted to $2,151 million, while the 2020
EBITDA A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, pronounced ) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandat ...
was $1,222 million.


Carbon footprint

Uralkali reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 1,704 Kt (-6.3 /-0.4% y-o-y).Alt URL
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Sponsorship

Uralkali was a minor sponsor for Sahara Force India F1 Team and its rebranded team in 2018 season. In 2021, it was announced that Uralkali would become the title sponsor of
Haas F1 Team Haas Formula LLC, competing as MoneyGram Haas F1 Team, is an List of Formula One constructors#Team's nationality, American-licensed Formula One racing team established by NASCAR Cup Series team owner Gene Haas in April 2014. The team made its ...
after Nikita Mazepin, son of Dmitry Mazepin, signed with the team for the 2021 season. Uralkali also sponsors Hitech GP's cars in the
GB3 Championship The GB3 Championship is a single seater motorsport series based in the United Kingdom. The championship is the UK's premier single-seater category, and is aimed at young racing drivers moving up from FIA Formula 4 championships, the GB4 Cha ...
. In February 2022, as a consequence of the
2022 Russian invasion of Ukraine On 24 February 2022, , starting the largest and deadliest war in Europe since World War II, in a major escalation of the Russo-Ukrainian War, conflict between the two countries which began in 2014. The fighting has caused hundreds of thou ...
, Haas removed the branding of its sponsor Uralkali from its cars and equipment and eventually terminated Uralkali's sponsorship contract, as well as Mazepin's driver contract, which was based on the sponsorship deal, in March. In August 2024, it was reported that Haas has to reimburse US$9 million to Uralkali for the cancelled sponsorship contract by a Swiss arbitrator two months prior. This resulted in Dutch bailiffs and police entering the Haas paddock during the
2024 Dutch Grand Prix The 2024 Dutch Grand Prix (officially known as the Formula 1 Heineken Dutch Grand Prix 2024) was a Formula One motor race held on 25 August 2024 at Circuit Zandvoort in Zandvoort, Netherlands. It was the fifteenth round of the 2024 Formula One W ...
weekend to valuate their assets for Uralkali to potentially seize should the company did not receive payment by 26 August. On 23 August, Haas team owner Gene Haas confirmed the team has made the payment but it was complicated by the Russian sanctions. On 26 August, Uralkali confirmed the receipt of the payment and Haas was allowed to leave the country.


References


External links

* * {{Official website, http://www.uralkali.com Chemical companies of Russia Companies listed on the Moscow Exchange Chemical companies of the Soviet Union Companies based in Perm Krai Russian brands Uralkali