Recently, reports claimed that a Russian potash producer has settled with India on a supply contract price that is 25% lower than its last year’s contract. This is expected to significantly hurt the pricing power of the potash cartel, as the rest of the world is likely to follow suit.

The potash cartel comprises Canpotex – a partnership between Potash Corp. of Saskatchewan (POT), Agrium Inc. (AGU) and Mosaic Co. (MOS) – besides three Russian and one German producer. Together, they account for 75% of the global potash capacity.

The price of potash – an essential crop nutrient – remained obstinately higher on top of falling demand. The fertilizer cartel had deliberately curtailed production to keep pricing unaffected. About 40% of the global potash production capacity has been idled since the second half of 2008.

Canpotex has succeeded in maintaining its price level recently by signing contracts with customers in

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Someone from Renaissance believes that more Washington decides to play around in Georgia and the Ukraine, the worse the Russian stock market will perform. To us, that seems to be a clear demonstration of a transparency problem. Marina Akopian, a partner at London-based emerging markets boutique Hexam Capital (a joint venture with Resolution Asset Management) says: 'Prices bear little or no relation to results, with sellers getting rid indiscriminately of winners and losers.' She cites potash producer UralKali, whose share price is down some 70 per cent over three months despite first-half revenue growth of 114 per cent and net income up 261 per cent year on year. 'The plunge would not have been so steep had the government done some more explaining,' says Igor Yurgens, head of government relations at Renaissance Capital, Russia's largest privately owned investment bank. 'It needs to be more open about its medium and long-term ...