Russia1 Russia: Overview of Supply & Demand Russia is the major salt market in the region. The domestic production covers about 85% of the consumption. The remainder is covered by import supplies from neighboring countries ± principally Ukraine and Belarus. Salt Supply and Demand for RU - 2006 (in kt) 9000 8000 7000 6000 5000 4000 3000 2000 1000 35 1280 7315 8560 0 Production Import Export Apparent Consumption 2 Russia: Supply - Producers Russia has significant salt mining activities, the major domestic suppliers in Russia are: Major Suppliers of NaCl in Russia - 2006 Company Producers Bassol Iletsksol Kaustik Volvograd Sayanskchimprom Sibsol Silvinit Nizhniy Baskunchak Orenburg Volvograd Sayansk UsolieSibirskoe Solikamsk RU RU RU RU RU RU Lake salt Rock salt Brine Brine Brine salt Rock salt Primary producer Primary producer Primary producer Primary producer Primary producer Primary producer Location Salt Origin Salt Type Remarks 3 Russia: Supply ± Producers (Continued) The major domestic suppliers in Russia are (continued): Major Suppliers of NaCl in Russia - 2006 Company Producers Soda Sterlitamak Tirestkiy Solerudnik Sterlitamak Tiret RU RU Brine Rock salt Primary producer Primary producer Location Salt Origin Salt Type Remarks 4 Russia: Supply - Traders Trading and distribution play a major role in the salt supply to the domestic market in Russia. The major salt traders are: Major Suppliers of NaCl in Russia - 2006 Company Traders Location Salt Origin Eurosalt Eurotrust Expo Khimpromtorg Mineral Trading Polisol Sevzapregionsol SPB Solinvest St. Petersburg Moskva Berezniki Moskva Soledar St. Petersburg Nizhniy Novgorod NL: Akzo BY: Mozyrsalt, UA: Artemsalt, Slavyansksalt RU RU: Silvinit UA: Artemsalt Imported salt BY: Mozyrsalt, RU: Silvinit 5 Russia: Supply Continued - Traders Major salt traders (continued): Major Suppliers of NaCl in Russia - 2006 Company Traders Location Salt Origin Sol Regiona Sol Zemli TD Sobr TD Sol TD Soldo TD Sol Chernozemlya Samara Moskva Bryansk Moskva Irkutsk Voronezh RU RU RU BY: Mozyrsalt, UA: Artemsalt, Slavyansksalt RU: Sibsol, Tiretskiy Solorudnik UA: Artemsalt 6 Russia: Salt Production PRODUCERS - Overview On the merchant market there are four major Russian salt producers, which are private companies. The companies are Bassol Iletsksol Silvinit Uralkaliy (which appears to have suspended its salt production) In addition, there are state owned salt companies in Siberia: Tiretskiy Solerudnki Sibsol (said to be under the process of bankruptcy) Mikhailovskiy Zavod Khimreaktivov. 7 Russia: Salt Production PRODUCERS - Overview There are three major brine salt producers, two of them on the territory of the European Russia and one in Siberia: Soda Sterlitamak (Yar-Bishkadag huge salt deposits in Bashkirtostan) Kaustik Volgograd (salt deposits in the region of Volgograd) In Siberia Sayanskkhimprom (the Usolye-Sibirskoe salt deposit as well as the Kempenday salt deposits) These three brine salt producers (solution mining) do not appear on the merchant market. There are producing brine salt, rock salt and lake sediment salts in the Russian federation. 8 Russia: Salt Production BASSOL Bassol at Nizhniy Baskunchak is the largest merchant market salt producer in the Russian Federation. The salt production is carried out by harvesting lake sediment salts on the salt lakes Baskuchak and Elton in spring and summer. Prior to 1990 the annual production varied about 5¶500-6¶000 ktpa, then it has settled on the level of about 1¶500 ktpa. Bassol¶s historical salt production is shown in the table below (ktpa): 1997 925 1998 1¶036 1999 1¶750 2000 1¶790 2001 1¶420 2002 1¶670 9 Russia: Salt Production BASSOL Bassol produces bulk salt suitable for human consumption: about 50-55 ktpa of packaged salt suitable for human consumption and technical-industrial salt for various industrial uses. For Bassol, the main transportation routes are railway, road and also the Volga and Akhtuba Rivers waterways - near the estuary there is a distance in which the Volga runs parallel with the Akhtuba. Typical geographical sales of Bassol in percentages of weight are given below: Tsentralniy rayon Privolzhskiy rayon Yuzhniy rayon Severozapadniy rayon Siberia and export TOTAL 52% 17% 20% 9% 2% 1¶450 kt 10 Russia: Salt Production BASSOL Bassol is believed to supply with salt raw material a number of Russian chloralkali plants in the European part of the country. Its salt reaches as far as to the Kaprolaktam Dzerzhinsk chloralkali plant, furthermore to Azot Novomoskovsk and Khimprom Cheboksari. Some quantities of Bassol salt may even reach the remote paper and pulp industry located at Karelia (this is located in the Severozapadniy rayon). 11 Russia: Salt Production ILETSKSOL Iletsksol located near Orenburg and produces rock salt by mining. The company¶s annual salt production capacity is about 600 kt, which is to be expanded to 1¶200 ktpa (planned for 2008). At present Iletsksol produces about 520 kt of salt (about 70-80% of this is salt suitable for human consumption and the rest of 20-30% is technical-industrial salt). Major consumers are the food industry, retail market through the trading house called TD Iletsksol,the fishing sector, etc. From amongst the industrial sectors the gas and crude producer Surgutneftegaz is the major client. The company is the only salt exporter in the Russian Federation exporting some quantities of salt first of all to Kazakhstan (it is situated very close to the Russian-Kazakh border but also to Azerbaijan and Uzbekistan). It is expected that the market share of Iletsksol will increase after the completion of the capacity expansion. 12 Russia: Salt Production SILVINIT Silvinit is located at Solikamsk and its core business is the production of potassium salts and fertilizers. Salt is produced by the company as byproduct. Silvinit produces salt suitable for human consumption, fodder salt, so called Kama salt for the oil and gas industry, as well as water treatment also for the paper and pulp industry, and lower grade salts for road deicing. Typically Silvinit produces about 280 kt of Kama salt for the oil and gas industry as well as for various water treatment applications, and about 320 kt of rock salt also used for chemical transformation. Silvinit supplies salt raw material to the Kirovo-Chepetskiy Khimzavod chloralkali plant. Due to the temporary outage in Uralkaliy Berezniki salt production, Silvinit become the main supplier of salt for the Soda Berezniki soda ash plant. 13 Russia: Salt Production SILVINIT The company has the relatively most favorable position with respect to the the pulp and paper industry plants located in the Karelia region (in the neighborhood of Finland). This includes the major pulp producers at Arkhangelsk, Novodvinsk, Segezha and Kondopoga. In comparison this is roughly the same distance as the distance between Moskva and the Ural mountains. By comparison, the distances between the region of Karelia, where the above mentioned paper and pulp plants annually producing about 1¶000kt to 1¶200kt of pulp are located, and the other big salt producers for the merchant salt market are unusually long ones. 14 Russia: Salt Production URALKALIY Uralkaliy is located at Berezniki (near to Silivinit Solikamsk) and its core business is the production of potassium salts and fertilizers. As by-product Uralkaliy recovers rock salt as well. In 2003 the production of rock salt was 650 kt. However, after an incident in the salt producing mine in 2004 the production has not been restarted. Until 2003 Uralkaliy had been the main supplier of salt to the Soda Berezniki soda ash plant. 15 Russia: Salt Production SODA STERLITAMAK Soda Sterlitamak is the largest brine salt producer in the Russian Federation. Its Yar-Bishkadag deposit in the Sterlitamak-Salavat region is virtually inexhaustible. The solution mining is carried out in the depth of ca. 1¶300 m. In agreement with the proposed Soda Sterlitamak development strategy, which targets the annual production of soda ash ca. 2¶000 ktpa (an increase of ca. 800 kt compared to the 2006 production level) the company plans to reconstruct its brine fields and open further seven brine wells. Soda produces brine for captive use as well as it sells to Kaustik Sterlitamak chloralkali plant and to the small Ufachimprom chloralkali plant. Soda is not considered as a merchant market producer. This brine salt is used exclusively for chemical transformation. 16 Russia: Salt Production KAUSTIK VOLGOGRAD Kaustik Volgograd is a major producer of brine salt for captive use as raw material for the production of caustic soda as well as for the neighboring Chimprom Volgograd (also for caustic soda production). Following the break-up of the old economic system, the so called ³brine processing plant´ was acquired by Kaustik, thus the company become the monopoly supplier of salt (as brine) to Chimprom Volgograd. The estimated salt reserves of the deposit, which is called the Svetloyarsk salt deposit, is about 1¶100 million metric tons. Kaustik was granted a permit until 2013 to extract this salt to an annual maximum volume of 2¶000 thousand cubic meters of brine. Approximate annual production of brine is about 1¶500 thousand cubic meters. 17 Russia: Salt Production OTHER PRODUCERS The other merchant market salt producers Tiretskiy Solerudnik as well as Sibsol and Mikhailovskiy Zavod Khimreaktivov produce together about 660 ktpa for the merchant market. The third non-merchant market brine producer Sayanskchimprom is located in Siberia. 18 Russia: Salt Production The recent development of the salt production in Russia is given in the following: Production of Primary NaCl in Russia ± in kt Company Rock Salt Iletsksol Silvinit Tiretskiy Solerudnik Uralkaliy Others Total Rock Salt Brine Salt Kaustik Volgograd Sayanskchimprom Sibsol Soda Sterlitamak Total Brine Salt 420 266 50 2500 3236 19 2003 2004 2005 2006 470 700 330 650 100 2250 470 720 400 0 120 1710 520 640 400 0 200 1760 520 640 450 0 255 1865 440 280 45 2730 3495 470 325 40 2850 3685 500 345 na 3155 4000 Russia: Salt Production The recent development of the salt production in Russia is given in the following (continued): Production of Primary NaCl in Russia ± in kt Company Lake Sediment Bassol 1400 1530 1420 1450 2003 2004 2005 2006 Total, Lake Sediment TOTAL SALT 1400 6886 1530 6735 1420 6865 1450 7315 20 Russia: Major Salt Producers The major salt suppliers in Russia are shown in the following: Major Salt Producers in Russia Company Bassol Iletsksol Kaustik Volgograd Sayanskchimprom Sibsol Silvinit Headquarters Location Nizhniy Baskunchak Orenburg Volgograd Sayansk Usolie-Sibirskoe Solikamsk Main Activities Seasonal lake salt harvesting Salt mining Captive supplier Captive supplier Salt mining (brine evaporation) Potash salts mining (NaCl byproduct) Brine salt 45% foodgrade salt, 55%technical 80% foodgrade, 20% technical Exclusive supply for Chimprom Volgograd Remarks 21 Russia: Major Salt Producers The major salt suppliers in Russia are shown in the following (continued): Major Salt Producers in Russia Company Soda Sterlitamak Tiretskiy Solerudnik Uralkaliy Headquarters Location Sterlitamak Tiretsk Berezniki Main Activities Soda ash Salt mining Potash salts mining (NaCl byproduct) Brine salt Rock salt Rock salt ± may be idle Remarks 22 Russia (Western Part): Main Producers & Users OAOSegezha Segezha OAO Kotlasskiy CBK Korazhma Kotlas Mondi Business Paper Sitikvar near Novoclvinsk OAO Arkhangelskiy CBK Novodvinsk OAO Kondopoga Kondopoga Kirovo-Chepetskiy Khimzavod Kirov Azot Novomoskovsk Kaprolaktam Nizhniy Novgorod Chimprom Cheboksari Cheboksari Silvinit Solikamsk Uralkaliy Berezniki Russkaya Sodovaya Kompania Berezniki Solikamsk Paper and Pulp Co. Solikamsk Ufachimprom Ufa Soda Sterlitamak *) Sterlitamak Kaustik Sterlitamak Sterlitamak Kaustik Volgograd *) Volgograd *) Captive Salt Bassol Nizhniy Baskunchak Iletsksol Orenburg Chimprom Volgograd Volgograd Salt Producers Salt Users for CT Paper & Pulp Industry 23 Russia (Siberia): Main Producers & Users Ust¶ilimsk LPK Ust¶ilimsk Bratsk Komplex Bratsk Chimprom Kemerovo Sayanskchimprom *) Sayansk Salt Producers Salt Users for CT Paper & Pulp Industry *) Captive Salt Sibsol Usolie-Sibirskoe Usoliechimprom Usolie Tiretskiy Solerudniki Tiret 24 Russia: Ownership of Main Salt Producers & Players The major salt suppliers in Russia are shown in the following table: Ownership of the Major Salt Producers In Russia Company Bassol Ownership/Comments Investment company Olma Moskva 30,5%, the rest private persons Iletsksol Orbis Kapital 46,6%, Credit Prive SA 31,1%, other 22,3% Kaustik Volvograd Part of Nikochem group ± supply to Plastcard, a major PVC producer Owner is the Renova Group ± Group has membrane electrolysis and produces PVC State owned Investment company Financial House 25,08%, Hustell Trading Ltd 17,07, IBH Beteiligungs- und Handelges mbH 13,35%, Royalpart SA 13,34%, JSC Akron 8,10%, Eventus AG 6,35%, Bilarex Co Ltd 5,11% Sayanskchimprom Sibsol Silvinit 25 Russia: Ownership of Main Salt Producers & Players The major salt suppliers in Russia are shown in the following table (continued): Ownership of the Major Salt Producers In Russia Company Soda Sterlitamak Ownership/Comments Depozitarnaya Kliringovaya Kompania 8,22%, Ministerstvo Imushestvennych Otnoshenniy RB 61,65 %, AK Sberegatelniy Bank RF 26,73 State owned Director of the board of directors Dmitriy Ribolovlev 78%, member of the board of directors Vladimir Shevtsov 2,1%, others 19,9% Tiretskiy Solerudnik Uralkaliy 26 Russia: Salt Supply The main uses for salt in Russia are shown in the following table. Chemical transformation is the major use: Domestic and Foreign Supply in Russia by Application - 2006 (in kt) Supply Source Application Chemical Transformation Road Salt Human Consumption Other TOTAL Local Supply 5655 105 370 1150 7280 Import Supply 0 0 730 550 1280 Total 5655 105 1100 1700 8560 Source: based on trade statistics and discussion with Industry 27 Russia: NaCl Supplier Market Shares Soda Sterlitamak in Sterlitamak is the major producer of primary salt in Russia OTHER 0% MOZYRSALT BELARUS 3% TIRETSKIY SOLERUDNIK 5% SAYANSKKHIMPROM 5% ILETSKSOL 6% KAUSTIK VOLGOGRAD 6% SILVINIT SOLIKAMSK 7% SODA STERLITAMAK 38% BASSOL 17% ARTEMSALT UKRAINE 13% 100% = 8560 kt Note: Graph includes captive use 28 Russia: Salt Consumption The Russian salt consumption is estimated ca. 8¶500-8¶600 ktpa whereas the merchant salt market size is about 4¶500-4¶600 ktpa (the brine salt does not constitute a part of the merchant market and accounts for ca. another 4¶000 ktpa). In the merchant market, the consumption by end-uses is estimated to be as follows: Application Chemical industry Table salt and food industry Gas and oil industry Paper and pulp industry Agriculture Energy Metallurgy Military Other TOTAL 29 ktpa 1¶650 1¶150 280 230 280 190 140 150 530 4¶600 % Weight 36% 25% 6% 5% 6% 4% 3% 3% 12% 100% Russia: Salt Consumption The merchant market structure by supplying companies is given below: Primary Producer Bassol Silvinit Iletsksol Artemsalt Mozyrsalt Megapolis Ltd. Akzo Siberian producers TOTAL ktpa 1¶450 640 520 1¶100 180 40 10 660 4¶600 % Weight 32% 14% 11% 24% 4% 1% 0,2% 13,8% 100% 30 Russia: Salt Consumption The chemical industry is the biggest consumer of salt in Russia. Taking into account the non-merchant market salt consumption (that is the brine), the chemical industry share becomes more important. Forecasts for the chemical industry show that the production of caustic will grow at a moderate rate, while a a relatively significant production increase of soda ash is expected. Thus in the caustic sector the company Kirovo-Chepetskiy Khimzavod announced it would switch to KOH production. The other electrolysis plants especially those of with bigger capacities, are expected to increase their caustic output while those of the smaller capacity will face an uncertain future. In the production of soda ash Soda Sterlitamak announced its long term strategy to reach an annual output of ca. 2¶000 ktpa of soda ash by 2010. The other smaller producer of soda ash Soda Berezniki is about to construct a 500 ktpa of dense soda ash plant with a planned startup in 2009. 31 Russia: Major Consumers The major salt users for chemical transformation in Russia are shown in the following table: Major Salt Consumers for Chemical Transformation Company SODA /BASCHIM GROUP/ RUSSKAYA SODOVAYA KOMPANIA Location STERLITAMAK Application Estimated Consumption (in kta) 2700 Remarks SODA ASH CAPTIVE BRINE PRODUCTION TILL 2003 ROCK SALT SUPPLIED BY URALKALIY,NOW PURCHASE ON MERCHANT MARKET (KHIMPROMTORG BEREZNIKI) CAPTIVE BRINE PRODUCTION BRINE SUPPLIED BY KAUSTIK VOLGOGRAD MOSKVA/ BEREZNIKI SODA ASH 800 KAUSTIK VOLGOGRAD VOLGOGRAD CAUSTIC SODA CAUSTIC SODA 365 CHIMPROM 150 32 Russia: Major Consumers The major salt users for chemical transformation in Russia (continued) : Major Salt Consumers for Chemical Transformation Company Location Application Estimated Consumption (in kta) 410 100 150 45 Remarks KAUSTIK/BASCHIM GROUP/ AZOT KAPROLAKTAM UFACHIMPROM STERLITAMAK NOVOMOSKOVSK DZERZHINSK UFA CAUSTIC SODA CAUSTIC SODA CAUSTIC SODA CAUSTIC SODA BRINE SUPPLIED BY SODA STERLITAMAK VIA PIPELINE SALT PURCHASED ON THE MERCHANT MARKET SALT PURCHASED FROM BASSOL BRINE VIA PIPELINE FROM STERLITAMAK/PLANT CLOSED 33 . , 0,3% , 75%, : -15°C, , 0,3% . . 51574-2000 150 / . (n) 4246:2003, , 10 / ; K4[Fe(CN)6]·3H2O. : 3583-97( 13830-97) 14.4-00032744-005-2003 4246:2003 14.4-00032744-005-2003 . 34 Russia: Major Consumers The major salt users for chemical transformation in Russia (continued) : Major Salt Consumers for Chemical Transformation Company Location CHEBOKSARI KIROVOCHEPETSK SAYANSK Application CAUSTIC SODA CAUSTIC SODA CAUSTIC SODA CAUSTIC SODA Estimated Consumption (in kta) 140 Remarks SALT PURCHASED ON THE MERCHANT MARKET SALT PURCHASED FROM SILVINIT BEREZNIKI (SWITCHES PROD TO KOH) CAPTIVE BRINE PRODUCTION BRINE SUPPLIED BY SAYANSKCHIMPROM CHIMPROM KIROVOCHEPETSKIY KHIMZAVOD SAYANSKCHIMPROM USOLIECHIMPROM (NITOL GROUP) 130 230 USOLIE 150 35 Russia: Major Consumers The major salt users for chemical transformation in Russia (continued) : Major Salt Consumers for Chemical Transformation Company Location Application CAUSTIC SODA, PAPER & PULP CAUSTIC SODA Estimated Consumption (in kta) Remarks BRATSK KOMPLEX HOLDING BRATSK 120 SALT PURCHASED ON THE MERCHANT MARKET CHIMPROM KEMEROVO 50 SALT PURCHASED FROM TIRETSKSOL TIRET OTHER DZERZHINSK CAUSTIC SODA 115 SALT PURCHASED FROM BASSOL 36 Russia: Salt Consumption There is substantial activity in the table salt and the food industry salt sector. Tension between Russia and Ukraine led to increased salt purchases by the population fearing of some Ukrainian retaliation for the natural gas affair (NOTE: Ukrainian salt suitable for human consumption exports to Russia are about 500-520 ktpa). According to the above breakdown the annual consumption of salt suitable for human consumption is about 1¶150 kt, of which ca. 450 kt ends up in the food industry and 690-700 kt is as table salt. Artemsalt supplies about 500-520 ktpa of salt suitable for human consumption. Ukraine Megapolis (also known as Slavyansksalt) about 30-40 kt of iodized table salt, and another ca. 180 ktpa of table salt is supplied by Mozyrsalt. From Western Europe, Akzo supplies about 9-10 kt of mainly nitrite salt for the meat processing industry (ca. 6 ktpa) and another ca. 3 ktpa of iodized table salt from its Dutch and Danish plants. (Akzoµs exclusive distributor in the RF is Eurosalt at St.Petersrburg). In this segment the share of imported salt is ca. 60-63% (in 2006). 37 Russia: Salt Consumption The paper and pulp industry is located mostly in the Severozapadniy region in Karelia, where the main producers of pulp and paper are to be found at Arkhangelsk-Novodvinsk, Segezha and Kondopoga. The Änearest´ domestic salt producer is Silvinit, which is still quite far away from these sites (there are no salt imports from the Western side of this region). The paper and pulp sectors estimated annual salt consumption is about 230 kt. The main consumers are believed to be the major pulp producers in Karelia (European Russia). These include OAO Arkhangelskiy CBK at Novodvinsk (ca. 830 ktpa of pulp), OAO Segezha paper and pulp factory (ca. 300 ktpa of pulp), OAO Kondopoga (ca. 100 ktpa of pulp). Also close to Karelia is the OAO Kotlasskiy CBK Koryazhma (with about 1000 ktpa of pulp output). In the Severozapadniy rayon is the pulp producer Mondi Business Paper plant at Siktivkar (with ca. 550 ktpa of pulp output). The Solikamsk Paper and Pulp Company in Solikamsk produces about 70 ktpa of pulp. There are two major pulp producers in Siberia. As previously stated, the Karelia pulp-paper plants are located far away from the main primary salt producers and the railway transportation tariffs are increasing continuously. 38 Russia: Salt Consumption There are some leading trading companies supplying the domestic salt to the merchant market: Sol Chernozemlya the official salt trader of Artemsol is located at Voronezh, the company Solinvest at Nizhniy Novgorod sells salt produced by Bassol, Silvinit, Iletsksol, Mozyrsalt and Slavsol; the trading company Sol Zemli sells salt produced by Bassol; Torgoviy Dom Sol at Moskva sells salt of Artemsalt, Mozyrsalt as well as Slavyansksalt on the territory of the European Russia; Mineraltrading at Moskva is the exclusive salt trader for the primary producer Silvinit, Eurotrust Expo at Moskva head office sells salt of Mozyrsalt, Slavyansksalt as well as Artemsalt. Another top salt trader is Sol Regiona with head office at Samara sells salts of Bassol, Iletsksol, Silvinit and Artemsol. Khimpromtorg at Berezniki sells salt produced by Silvinit. TD Soldo sells Siberian salt of Tiretskiy Solerudnik and Sibsol. 39 Russia: Salt Trade In summary, the total Russian salt consumption is about 8¶500-8¶600 ktpa, and the merchant salt market size is about 4¶500-4¶600 ktpa. The Russian salt exports (30-40 ktpa), mainly to Kazakhstan from the neighboring Iletsksol, are quite small. There are significant imports of salt suitable for human consumption as well as industrial salt from Ukraine and Belarus. The imported salt share on the Russian merchant salt market is about 30%. 40 Russia: Salt Trade Ukraine but also Belarus play a leading role in supplying the Russian merchant salt market. Thus in 2006, Artemsalt exported about 500-510 kt of salt suitable for human consumption. The same company supplied about 510520 kt of industrial salt, and Slavyansksalt about 35-40 kt of iodized table salt. Mozyrsalt (Belarus) exported about 180 kt of salt suitable for human consumption. It is expected that the Ukrainian and the Belarus salt suppliers will retain their market shares in a medium term. Future imports through the port of Viborg north-east of the Kondopoga, Segezha and Novodvinsk/Arkhangelsk pulp-paper plants may be considered. 41 Russia: Salt Trade Main importers of Ukrainian salt to the Russian Federation are: Importer Elton Sol Chernozemla Transmarket Sodruzhestvo 96 Salting Potencial Metrade Megatranzit Litrosna Dubna Briz AKB Trans Kursktara Belgorodtorgsnab 42 Quantity (2006) 40 kt 90 kt 35 kt 120 kt 40 kt 20 kt 20 kt 25 kt 270 kt 10 kt 50 kt 50 kt 25 kt 150 kt Russia: Salt Pricing Typical salt prices of Mineraltrading (exclusive trader of Silvinit) are as follows (as per 1st of January 2007): Salt Type Bassol Packaging 1¶450 Price Rubl/mt (Excl. VAT) 1¶563 730 540 530 530 450 Common salt (food grade) Iletsksol 1 kg 50 kg sacks bulk bulk bulk bulk Ground salt Technical grade salt Salt for the oil-gas industry, water softening in the energy sector Low grade quarry salt NOTE: Exchange rate 1 USD = 26 RUBL,1 EUR = 35 RUBL. Quoted prices do not include the transportation costs, prices are at the port-of-loading railway stations; 100% advance payment. 43 Russia: Salt Pricing Typical salt prices of Bassol (top salt producer in the RF) are as follows (as per 5th of March 2007, in Rubl/mt excl. VAT): Salt Type Common Salt Industrial Salt Halite plus 10% VAT plus 10% VAT plus 18% VAT Bulk Salt To Be Transported On Barges Ground 2 Ground 3 Coarse Ground 2 Ground 3 Coarse Ground1 (weight 900 kg) Ground 2 Ground 3 Coarse 44 ------Bulk Salt To Be Transported On Railway ------702 661 640 --- 559 575 537 494 463 435 669 640 608 586 --552 516 449 423 400 --593 571 539 Salt In 1 Mt Of Containers To Be Transported On Railway Russia: Salt Pricing Typical salt prices of Bassol (continued): Salt Type Common Salt Industrial Salt Halite plus 10% VAT plus 10% VAT plus 18% VAT Packaged Salt In Sacks To Be Transported On Railway Ground 1 Ground 2 Ground 3 Coarse Ground 1 iodized, with moisture cont. below 1% below 1% 776 693 671 --887 874 --671 649 599 ------622 599 551 ----- Ground + anticaking agent added, with moisture cont. Packaged Table Salt/Plus 10%Vat/To Be Transported On Railway non-iodised Packaged salt a 1kg in 40kg bags 1¶450 iodised 1¶592 45 Russia: Salt Pricing Typical salt prices of Mozyrsalt (Belarus) are given below (price includes producerµs price plus transport to the Belarus/Russian border): Salt Type Table salt in 50 kg sacks Table salt in 25 kg sacks Table salt a 1kg in 2O kg PE sacks Iodized table salt in 50kg sacks Iodized table salt in 25kg sacks Iodized table salt a 1kg in 20 kg PE sacks Tableted table salt in 25 kg sacks Price (Rubl per mt incl. VAT) 2¶386 2¶398 2¶826 2¶540 2¶551 2¶991 5¶653 46