US demands Belarus potash carve-out

The United States is pressing European governments and Ukraine to reopen routes for Belarusian potash, weeks after Washington lifted its own sanctions on Belaruskali, the state producer at the center of Belarus’s fertilizer trade. The request has put U.S. policy on a different track from the European Union’s current sanctions regime, which was extended in February for another year. The immediate issue is transport: American officials want Belarusian potash to move through Lithuania, Poland or Ukraine rather than through Russia, according to reports from Bloomberg, RFE/RL and other regional outlets. Washington’s March sanctions rollback is documented in a March 26 Treasury notice removing Belaruskali from the U.S. sanctions list. ### What exactly did Washington ask for? U.S. officials asked Lithuania, Poland and Ukraine to lift restrictions that block the transit of Belarusian potash through their territory, according to an RFE/RL report published on May 23 and Bloomberg reporting from May 20. The product is potash fertilizer, a major Belarus export before Western sanctions curbed sales after President Alexander Lukashenko’s crackdown at home and Minsk’s support for Russia’s war in Ukraine. (ofac.treasury.gov) A May 22 report by Finway, citing a letter it said was released by U.S. Special Representative to Belarus John Cole, said Washington told the three countries that U.S. companies were interested in buying and transporting Belarusian potash and would need routes that avoid Russia. The Ukrainian Foreign Ministry confirmed receipt of the appeal, according to that report and follow-up regional coverage. (rferl.org) ### What changed on the U.S. side in March? The U.S. Treasury’s Office of Foreign Assets Control said on March 26 that it had rescinded Belarus Directive 1 and removed Belaruskali from the Specially Designated Nationals list. The same Treasury notice also removed other Belarus-linked entities, including changes tied to Belarus’s financial sector. Legal and compliance summaries published after the Treasury action said the move effectively reopened U.S. dealings with Belaruskali, so long as no other sanctions applied. (finway.com.ua) Regional and trade press reports said the rollback followed the release of 250 political prisoners after talks involving a U.S. envoy in Minsk. (ofac.treasury.gov) ### Why do Lithuania, Poland and Ukraine matter so much? Lithuania mattered before 2021 because Belarusian potash moved through the port of Klaipeda, one of its main export outlets to global buyers. After sanctions hit Belaruskali, Belarus redirected shipments toward Russian rail and port infrastructure, making any revival of westbound transit dependent on neighboring states reopening access. (lewisbrisbois.com) Lithuanian Foreign Minister Kęstutis Budrys said this month that Washington was pressuring Vilnius to allow Belarusian fertilizer transit, according to Lithuanian public broadcaster LRT. Budrys said EU sanctions remain in force, and Lithuania has publicly tied its position to that broader European framework. (briefs.co) ### How far apart are the U.S. and EU positions? The European Union prolonged its Belarus sanctions until February 28, 2027, according to the Council of the EU’s sanctions timeline. Separate legal summaries of the EU’s latest sanctions package said Brussels adopted parallel new measures on Belarus in April, underscoring that the bloc’s framework remains in place even after Washington eased its own restrictions. (lrt.lt) That leaves a practical gap. The United States can permit U.S. firms to buy from Belaruskali, but those sales still depend on transport corridors controlled by countries operating under EU or national restrictions. Reports cited by Reuters and Bloomberg say Washington wants Kyiv to help make the case to European governments as well. (consilium.europa.eu) ### What happens next? The next test is in Brussels and in the capitals along Belarus’s border. Reports in regional media say the European Commission has been weighing some form of temporary relief, though official EU confirmation of a potash-specific carve-out was not available in the material reviewed. (usnews.com) For now, the concrete dates are March 26, when OFAC removed Belaruskali, and February 28, 2027, when current EU Belarus sanctions are due to expire unless renewed again. Any restart of large-scale potash transit would require decisions by Lithuania, Poland or Ukraine, and likely coordination with EU institutions and customs authorities. (ofac.treasury.gov) (globalbankingandfinance.com)