UPDATE 1-Uralkali says its future at risk over flood probe

(Adds company, analyst comment, details, background)

By Robin Paxton

MOSCOW, Nov 10 (Reuters) - Potash miner Uralkali (URKA.MM: Quote, Profile, Research) said on Monday its future would be at risk if Russia ruled it was culpable for a mining accident two years ago, slashing over 60 percent from the value of the company's London-traded stock.

Uralkali, controlled by billionaire Dmitry Rybolovlev, said it would face an "enormous financial burden" if forced to pay damages after the state reopened a probe into the 2006 flood at a potash mine, of which Uralkali was earlier cleared of blame.

"We believe there are no legal or moral grounds for making Uralkali responsible for the accident," the company's media relations department said in a statement emailed to Reuters.

"If, however, Uralkali is found culpable and made liable to the state and third parties for all damages, it will suffer an enormous financial burden. In this case, the company's future and plans would be in doubt."

Uralkali's plunge took the steam out of overall stock market gains which saw the benchmark RTS index .IRTS up 9.6 percent at its intraday peak.

"People saw Uralkali falling 60 percent and all the other shares declined," Troika Dialog head of trading Timur Nasardinov said. "It's just one more company with an element of risk."

Uralkali, through its Belarus-based export agent, accounts for about one third of global potash exports and more than tripled first-half profits this year as prices for the fertiliser ingredient rocketed to all-time highs.