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Uralkali Signs Two Trilateral Special Investment Contracts with RF Ministry of Industry and Trade and Perm Region
06.06.2019
Uralkali (the Company; Moscow Exchange: URKA), one of the world’s largest potash producers, has signed two trilateral special investment contracts (SICs) between the Ministry of Industry and Trade of the Russian Federation, Perm Region and the Company in order to stimulate investments into the national industry.
The documents were signed by Denis Manturov, Minister of Industry and Trade of the Russian Federation, Maxim Reshetnikov, Governor of Perm Region and Dmitry Osipov, Uralkali CEO, during the St. Petersburg International Economic Forum.
Uralkali plans to implement two new projects — Solikamsk-2 and Polovodovsky Project in order to increase the production of potash fertilizers in Perm Region to a capacity of 2.3 and 2.8 million tonnes respectively.
Special investment contracts provide the Company with the right to pay 0% profit tax until 2026 and 0% property tax until 2029. Uralkali plans to start production under the indicated SICs in 2024 (Solikamsk-2) and in 2027 (Polovodovsky Project). Total investment into the projects under the SICs will amount to about RUB 155 billion, while the number of jobs created — to about 1900.
Denis Manturov, Minister of Industry and Trade of the Russian Federation, commented:
— The successful implementation of these projects will enhance Russia’s presence in global export markets and support the growth of domestic fertilizer consumption. Moreover, this will create the new jobs both at the company and in allied sectors related to the functioning of the facilities along with substantial increase the amount of tax and non-tax revenues for the budgets at all levels.
Dmitry Osipov, Uralkali CEO, commented:
— We are grateful to the Ministry of Industry and Trade of Russia and the authorities of Perm Region for their support of such special investment projects, which have already become a key instrument for enhancement of investment activity. This mechanism allowed the Company to commence the dynamic implementation of these investment projects.
Uralkali (www.uralkali.com) is one of the world’s largest potash producers and exporters. The Company’s assets consist of 5 mines and 7 ore treatment plants in the towns of Berezniki and Solikamsk (Perm Region, Russia). Uralkali employs ca. 12,000 people in the main production unit. Uralkali’s shares are traded on the Moscow Exchange.