OAO Uralkali, Russia’s second-largest potash producer, jumped the most in almost six months after Vedomosti reported the government won’t impose an export duty on the fertilizer, citing budget policy documents.
The stock gained as much as 5.6 percent to 142.39 rubles, its highest intraday level since Feb. 17, and closed 2.8 percent higher at 138.63 rubles in Moscow. OAO Silvinit, the country’s largest potash producer, rose as much as 3.1 percent and closed 1 percent higher at 19,258.33 rubles.
“The news is positive for Uralkali and Silvinit since it mitigates the need for further tense discussion on export duties and will help both companies to save” as much as $1.5 billion over three years, VTB Capital analysts led by Elena Sakhnova wrote in a report e-mailed today.
To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at email@example.com