News that a Russian potash giant is breaking up the European potash cartel could hurt Saskatchewan's economy if it results in lower potash volumes.

Ukrali, one of the world's biggest producers of the mineral fertilizer, announced it will direct all of its exports through its own trading company, a move that investors see as a sign of lower global potash prices.

In Tuesday's trading, shares for North American potash producers, including PotashCorp, Agrium and Mosaic, fell as much as 23%. Saskatchewan has one of the largest potash deposits in the world, and economists believe that a big price drop could cut economic growth forecasts in the province this year by almost half.

The province has released a statement saying that it's just too soon to know what kind of impact this will have on their budget or Saskatchewan's economy.