OAO "URALKALI"

Location:

Russia

Project number:

28461

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

09 Dec 2003

Status:

Completed

PSD disclosed:

02 Sep 2003

Project Description

The proposed project consists of a corporate loan to OAO Uralkaly, a potassium salt producer located in the city of Berezniki, Perm Region, in the Urals. The loan would be disbursed against equipment modernisation, purchase of rolling stock and construction of own power plant.

Transition Impact

The transition impact potential of this project is primarily related to setting standards for corporate governance and good business conduct. Uralkaly may provide a good example of the practical implementation of the Corporate Governance Code. It has demonstrated transparent organisational structure, financial soundness, and dedication to further developing and maintaining corporate ethics. Transition impact will also come from improvements in energy efficiency and environmental compliance.

The Client

Open joint stock company Uralkaly is Russia's largest potassium salt (fertiliser) producer (4.03 million tons in 2002). It contributes to 11.3% of the world's potash production. Uralkaly's other products are magnesium sulphate (karnalite) and table salt. More than 85% of the Company's output is exported.

EBRD Finance

A 7-year senior corporate loan in an amount of up to $75 million. The Bank aims to syndicate up to $48 million to commercial banks.

Project Cost

$75 million (€ 67 million).

Environmental Impact

The project was screened B/1. It was preceded by an eco-efficiency audit, which revealed energy efficiency enhancement opportunities. Further environmental due diligence will determine the extent of environmental, health and safety risks and agree on a mitigation programme to bring the operation in line with good industry practice.

Technical Cooperation

Uralkaly has benefited from environmental and energy efficiency audit financed by the Dutch Government.

Company Contact

Website: www.uralkaly.ru
 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.