URALCHEM OJSC announces the completion of its acquisition of shares in Uralkali (MISEX: URKA; LSE: URKA). As a result of the deal URALCHEM now controls 19.99% of Uralkali’s share capital.

Dmitry Konyaev, CEO of URALCHEM OJSC commented, “Uralkali remains the leader in the global potash industry with some of the most efficient production facilities. Fundamental prerequisites for the development and growth of the fertilizer market inspire confidence in Uralkali’s ability to further increase its profitability and to maximize shareholder value.”

“We are grateful to the VTB Group for their confidence and assistance in financing and organizing this complex transaction in such a short timescale and we highly appreciate our mutually beneficial partnership.”

About the companies:

URALCHEM OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM OJSC is the second largest ammonium nitrate producer in the world and number one in Russia.

Uralkali OJSC is one of the world’s largest potash producers with a share of about 20% of global potash production. The Company was set up in 2011 by joining of the Silvinit company to Uralkali OJSC. By the beginning of the year 2013, the production capacity of the company reached 13 million tonnes of potash per year. Uralkali employs around 11,800 people (in the main production unit). Uralkali’s shares and GDRs are traded on the Moscow Exchange and LSE, respectively.