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Detention of Uralkali CEO not to impact loan for Belarus

Russian Deputy Finance Minister reassured that the tranche would be allocated whatever the EurAsEc crisis fund decides

Photo ITAR-TASS/Sergei Karpov

Photo ITAR-TASS/Sergei Karpov

MOSCOW, August 28 (Itar-Tass) - Russian Deputy Finance Minister Sergei Storchak said the detention of Uralkali CEO Vladislav Baumgertner in the Belarusian capital will not impact the credit tranche for Belarus, to be allocated from the anti-crisis fund of the Eurasian Economic Community.

"Russia and Kazakhstan have obligations to the EurAsEc crisis fund. We have to meet them. If the anti-crisis fund decides that the final tranche of the credit should be allocated, we'll allocate it," Storchak told reporters on Wednesday.

He added that the tranche was worth $400 million.

Why Baumgertner was detained

Chairman of Supervisory Board for Belarusian Potash Company and CEO for Uralkali Vladislav Baumgertner has been detained in Minsk on Monday, as reported by Belarusian Investigative Committee representative Pavel Traulko.

According to its representative, the Investigative Committee inquires into criminal cases filed by the country’s Prosecutor’s Office under articles connected with authority abuse and abuse of office by employees of Belarusian Potash Company – Chairman of Supervisory Board Vladislav Baumgertner, Supervisory Board member Oleg Petrov, First Deputy CEO Konstantin Solodovnikov, Financial Affairs Deputy CEO Igor Yevstratov, Head of Freight Department Dmitry Samoylov and other staff members.

“Reasons for initiation of criminal cases became files that indicate on the abuse of office that led to substantial damage to Belarus’s national and governmental interests, as well as losses to Beloruskali OJSC andBelarusian Potash Company CJSC,” the Investigative Committee’s representative noted.

The Investigative Committee’s spokesperson added that by virtue of the evidence available in the case, as well as other facts the Investigative Committee determined to consider the criminally persecuted persons as charged offenders.

Uralkali reaction

The Russia-based Uralkali company, one of the world’s biggest producers of potash fertilizers, on Mondayresolutely condemned the detention of its general director Vladislav Baumgertner in Belarus.

“We are absolutely outraged by his detention and consider it to be a gross provocation on the part of the Belarusian authorities. We demand his immediate release,” Alexander Babinsky, a spokesperson for Uralkaliy, told Itar-Tass.

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