MIRA INFORM REPORT

 

 

Report Date :

15.05.2014

 

IDENTIFICATION DETAILS

 

Name :

BELORUSSKAYA KALIJNAYA KOMPANIYA OAO

 

 

Registered Office :

2 Melnikaite Street, 18th Floor, Suite 1805a Minsk 220004

 

 

Country :

Belarus

 

 

Date of Incorporation :

September 2013

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Trading as exporters of Belaruskaliy products mainly exports potash fertilizers

 

 

No. of Employees :

60

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

--

NB

New Business

 

--

 

Status :

New company

Payment Behaviour :

Unknown

Litigation :

Clear

 


 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Belarus

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 


 

BELARUS - ECONOMIC OVERVIEW

 

As part of the former Soviet Union, Belarus had a relatively well-developed industrial base; it retained this industrial base - which is now outdated, energy inefficient, and dependent on subsidized Russian energy and preferential access to Russian markets - following the breakup of the USSR. The country also has a broad agricultural base which is inefficient and dependent on government subsidies. After an initial burst of capitalist reform from 1991-94, including privatization of state enterprises, creation of institutions of private property, and development of entrepreneurship, Belarus' economic development greatly slowed. About 80% of all industry remains in state hands, and foreign investment has been hindered by a climate hostile to business. A few banks, which had been privatized after independence, were renationalized. State banks account for 75% of the banking sector. Economic output, which had declined for several years following the collapse of the Soviet Union, revived in the mid-2000s thanks to the boom in oil prices. Belarus has only small reserves of crude oil, though it imports most of its crude oil and natural gas from Russia at prices substantially below the world market. Belarus exported refined oil products at market prices produced from Russian crude oil purchased at a steep discount. In late 2006, Russia began a process of rolling back its subsidies on oil and gas to Belarus. Tensions over Russian energy reached a peak in 2010, when Russia stopped the export of all subsidized oil to Belarus save for domestic needs. In December 2010, Russia and Belarus reached a deal to restart the export of discounted oil to Belarus. Little new foreign investment has occurred in recent years. In 2011, a financial crisis began, triggered by government directed salary hikes unsupported by commensurate productivity increases. The crisis was compounded by an increased cost in Russian energy inputs and an overvalued Belarusian ruble, and eventually led to a near three-fold devaluation of the Belarusian ruble in 2011. In November 2011, Belarus agreed to sell to Russia its remaining shares in Beltransgaz, the Belarusian natural gas pipeline operator, in exchange for reduced prices for Russian natural gas. Receiving more than half of a $3 billion loan from the Russian-dominated Eurasian Economic Community Bail-out Fund, a $1 billion loan from the Russian state-owned bank Sberbank, and the $2.5 billion sale of Beltranzgas to Russian state-owned Gazprom helped stabilize the situation in 2012; nevertheless, the Belarusian currency lost more than 60% of its value, as the rate of inflation reached 53% in 2011 and 59% in 2012

 

Source : CIA

 

 

 

 


company name and address

 

BELORUSSKAYA KALIJNAYA KOMPANIYA OAO (CORRECT)

JSC BELARUSIAN POTASH COMPANY (Requested)

 

 

ADDRESS

 

Street   :           2 Melnikaite Street, 18th Floor, Suite 1805a

Town     :           Minsk 220004

Country  :          Belarus

 

Telephone:        (375 17) 211 0435 / 211 0443 / 211 2066 (Financial Department) / 203 6302 (Grigoriy Vladimirovich     Garbuzov) / 211 2813 / 211 2856 / 222 4633 / 222 4634 / 222 4350

Fax      :            (375 17) 222 4634 / 211 2249

E-Mail   :           g.garbouzov@belpc.by / finance@belpc.by / info@belpc.by

 

English Translation : Belarusian Potash Company OJSC

 

Also known as : Belorusskaya Kalijnaya Kompaniya Otkrytoye Aktsyonernoye Obshchestvo / BPC OJSC / Belarusian Potash Company OAO

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                Position

 

1. Elena Aleksandrovna Kudryavets       General Director

 

2. Aleksandr Vladimirovich Polyakov     First Deputy General

                                                                        Director

 

3. Grigoriy Vladimirovich Garbuzov      Deputy General Director /

                                                            Finance

 

4. Mikhail Mikhaylovich Kasko           Deputy General Director /

                                                            Logistics & Freight

 

5. Konstantin Yuryevich Deduk           Deputy General Director /

                                                             Marketing

 

6. Evgeniy Vasilyevich Lavrinovich      Chief Accountant

 

Total Employees :          60

 

 

PAYMENTS

 

No trade experience of payments is available.

 

Subject is a newly established business incorporated in September 2013.

 

Opinion on maximum credit :      As the subject has recently been

established and has no financial or

payment track record, we recommend

dealing on fully secured terms.

 

Trade risk assessment : High

 

It is normal accepted practice for international suppliers to deal on secured terms with Belarusian importers.

 

 

SIGNIFICANT CHANGES

 

BELARUS’ NEWLY ESTABLISHED POTASH TRADER BUSY SELLING BELARUSKALI PRODUCTS

 

On 14 October 2013, (www.butb.by): OAO Belarusian Potash Company - Belarus’ newly established potash trade – has been officially registered and is already selling Belaruskali products to overseas customers, Belaruskali CEO Anatoli Makhlai told.

 

OAO Belarusian Potash Company was created in conformity with ordinance #399 signed by Belarus’ President Alexander Lukashenko on September 5, 2013. Empowered to coordinate Belarus’ export of potash fertilizers, the new company was granted the exclusive right to export mineral or chemical fertilizers.

 

Before the breakup with Uralkali, Belaruskali had been trading potash via the Belarusian Potash Company – a potash trader established on a parity basis by Belaruskali and Uralkali. In July 2013 Uralkali announced a divorce from the Belarusian Potash Company and the launch of a new sales strategy with focus on volume. The conflict with Belaruskali landed Uralkali CEO Vladislav Baumgertner in jail in August.

 

According to Makhlai, Belaruskali now fully relies on OAO Belarusian Potash Company to ship potash fertilizer to overseas customers.

 

 

PRINCIPAL BANKERS

 

NAME     : ASB BELARUSBANK

 

Branch   : Dzerzhinskogo Avenue 69/1

Town     :  Minsk 220050

 

Telephone: (375 17) 279 4879 / 279 4676

Fax      :     (375 17) 279 4804

 

FINANCIAL INFORMATION

 

As the Company has only recently started trading, relevant financial information is not available.

 

 

LEGAL STATUS AND HISTORY

 

Date Started : September 2013

 

Tax No. : UNP 192050251

 

Authorised & Paid-Up Capital : not given                                           

 

Otkrytoye Aktsyonernoye Obshchestvo (open joint stock company) with the following shareholders :

  

   Shareholders                                                                                      Percentage

 

1. Belaruskaliy OAO                                                                                          48%

   (Belaruskali OJSC)

   Korzh Street 5

   Soligorsk 223710

   Belarus

   Tel: (375 174) 237 203

   Fax: (375 174) 237 165

   (fmly Republican Unitary Enterprise Production Amalgamation

   Belaruskali)

 

2. Belorusskaya Zheleznaya Doroga GO                                                              42%

   Lenina Street 17

   Minsk 220030

   Belarus

   Tel: (375 17) 225 4946

   Fax: (375 17) 227 5648

 

3. Beleksimgarant Belorusskoe RUP

   Eksportnogo-Importnogo Strahovaniya                                                              10%

   2 Melnikaite Street

   Minsk 220004

   Tel: (375 17) 209 4028

   Fax: (375 17) 209 4067

 

Affiliated companies of the subject company :


 

Associates

 

1. Belorusskaya Kalijnaya Kompaniya ZAO

   2 Melnikaite Street, 18th Floor, Suite 1805a

   Minsk 220004

   Telephone: (375 17) 211 0435 / 211 0443 / 211 2066

   Fax      : (375 17) 222 4634 / 211 2249

   E-Mail   : finance@belpc.by / info@belpc.by

   Website  : www.belpc.by

   General Director : Elena Aleksandrovna Kudryavets

   Employees : 110

   Est.: April 2005

   Tax No. : UNP 190615971

   Capital : B ROUBLE 100,000,000                                           

   Shareholders :

           Uralkaliy OAO                     -                  50%

           Belaruskaliy OAO                  -                45%

           Belorusskaya Zheleznaya Doroga GO -     5%

 

2. BPC Panama Inc.

   Paitilla Tower Office, Office No 11-11

   8th Avenue South and 56th Street East

   Panama City

   Panama

   Telephone: (507) 396 9182

   Fax      : (507) 396 9183

   Est.: 4 February 2011

   C.R. No.: 726178

   Sole shareholder: Belorusskaya Kalijnaya Kompaniya ZAO

 

3. BPC Fertilizantes Brazil Ltda.

   Rua Joaquim Floriano, No. 466, 24 andar

   Edifício Brascan Century Office, conj 2404

   Cep 04534-002, Itaim

   Sao Paulo

   Brazil

   Telephone: (55 11) 2165 2200

   Fax      : (55 11) 2165 2206

   Sole shareholder: Belorusskaya Kalijnaya Kompaniya ZAO

 

4. BPC Singapore Pte. Ltd.

   101 Thomson Road

   No. 28-02 United Square

   Singapore 307591

   Telephone: (65) 6251 1108

   Fax      : (65) 6251 1098

 

5. BPC Chicago L.L.C.

   30 S Wacker Drive,

   suite 2200, Chicago,

   IL 60606 - United States

   Telephone: (1 312) 466 7525

   Fax      : (1 312) 466 5601

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Trading as exporters of Belaruskaliy products mainly exports potash fertilizers.

 

NACE Code : 4675

 

Subject does not import any products at present.

 

Exports to 70 countries worldwide mainly to Europe, Norway, Belgium, China, India, Brazil, Thailand, Bangladesh, Malaysia and Sri Lanka.

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices located at the heading address.

 

 

REGISTERED OFFICE

 

2 Melnikaite Street

Minsk 220004

 

 

SPECIAL NOTE

 

You enquired on: JSC BELARUSIAN POTASH COMPANY. Please note that the correct name is as per heading.

 

Interviewed: Grigoriy Vladimirovich Garbuzov (Deputy General Director / Finance).


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.88

UK Pound

1

Rs.100.98

Euro

1

Rs.82.40

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.