NewsRussia sidesteps sanctions, supplies fuel explosive production

Russia sidesteps sanctions, supplies fuel explosive production

Russia continues to provide essential chemical components for explosive production, ordered by fertilizer firms EuroChem and UralChem. Despite sanctions, these companies have sidestepped the restrictions imposed by the US and the EU. Such supplies bolster the Russian war efforts in the ongoing conflict with Ukraine, Bloomberg emphasizes.

This is how they circumvent sanctions. Key components for ammunition production are reaching Russia.
This is how they circumvent sanctions. Key components for ammunition production are reaching Russia.
Images source: © Getty Images | Contributor
Magda Żugier

Bloomberg reports that Russia still acquires shipments of key chemical components crucial for making explosives, notwithstanding international sanctions. Thousands of tonnes of nitric acid and a blend of nitric and sulfuric acid, vital for explosives production, have been ordered by companies and facilities linked with JSC Spetskhimiya, one of Russia's largest explosive manufacturers.

According to documents disclosed by Bloomberg, these facilities, tasked with producing military materials, are set to receive these raw material shipments - as reported.

The orders originate from subsidiaries of significant fertilizer producers—EuroChem and UralChem—which, in spite of international sanctions, remain pivotal in the fertilizer market. EuroChem and UralChem have avoided stricter sanctions because their products, including nitrogen fertilizers, are vital for agriculture and global food supply. This situation, Bloomberg notes, complicates the imposition of comprehensive restrictions on these businesses. Still, several of their factories, which manufacture explosives, have been sanctioned by Ukraine's allied nations, highlighting their ties to the Russian military apparatus.

Nitric acid plays a central role in producing gunpowder and other explosives like TNT, used by Russia in the war. Documents indicate that based on forthcoming deliveries, Russia can produce about 6,500 artillery shells per day this year. The usage of these components isn't solely military; nitric acid is also critical for producing nitrogen fertilizers. This dual-use underscores the challenges in limiting trade of these materials, as noted.

Billionaires explain

EuroChem, under the control of billionaire Andrei Melnichenko, and UralChem, led by oligarch Dmitry Mazepin, are challenging targets for sanctions due to their significance in global agriculture. Representatives from both companies, although sanctioned, assert that their focus is on fertilizer production rather than supporting Russian militarism.

The rise in Russian fertilizer sales within the European market, which continues to meet about a quarter of Europe’s fertilizer needs, brings into question the sanctions' effectiveness. Experts from research bodies, such as Mark Bromley of the Stockholm Peace Research Institute, argue that sanctions should target companies reliant on state-owned conglomerates like Rostec, which controls Spetskhimiya. Nonetheless, given the global scale of the fertilizer market, fully obstructing these supplies is highly challenging.

Russian facilities like those in Dzerzhinsk and Biysk, which are slated to receive acid supplies this year, are listed among sanctioned entities. Despite this, further deliveries of fertilizers and explosives components will proceed.

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