Fertilizer firms dodge sanctions, fuel Russia's war efforts
Russia continues to supply key chemical components for the production of explosives, ordered by fertilizer companies EuroChem and UralChem, which, despite sanctions, have evaded restrictions imposed by the US and the EU. These supplies support the Russian war machine in the ongoing conflict with Ukraine, Bloomberg emphasizes.
As Bloomberg reports, Russia still receives shipments of chemical components essential for the production of explosives, despite international sanctions. Thousands of tons of nitric acid and a mixture of nitric and sulfuric acid, which are crucial in the production of explosives, have been ordered by companies and plants associated with JSC Spetskhimiya, one of the largest producers of explosives in Russia.
Documents disclosed by Bloomberg indicate that these plants, responsible for the production of military materials, will receive deliveries of this raw material, the report states.
These orders were placed by subsidiaries of large fertilizer manufacturers—EuroChem and UralChem—which, despite international sanctions, remain key players in the fertilizer market. EuroChem and UralChem have avoided stricter sanctions because their products, including nitrogen fertilizers, are essential for agriculture and global food supplies. This, as Bloomberg emphasizes, makes it difficult to impose full restrictions on these companies. Nevertheless, some of their factories, which produce explosives, have been sanctioned by Ukraine's allied states due to their connection with the Russian war machine.
Nitric acid is a central component in the production of gunpowder and other explosives, including TNT, which is used in the war by Russia. Documents show that based on planned deliveries, Russia will be able to produce about 6,500 artillery shells per day this year. The use of these components is not limited to military purposes—nitric acid is also essential in the production of nitrogen fertilizers. This, in turn, underscores the difficulty in restricting trade in these materials, the report states.
Billionaires explain
EuroChem, controlled by billionaire Andrei Melnichenko, and UralChem, led by oligarch Dmitry Mazepin, are difficult targets for sanctions due to their importance to the global agricultural industry. Representatives of both companies, although sanctioned, emphasize that their activities focus on fertilizer production, not supporting Russian militarism.
The increase in turnover from Russian fertilizers in the European market, which still supplies about a quarter of Europe's fertilizer needs, raises questions about the effectiveness of sanctions. Representatives of research institutes, such as Mark Bromley from the Stockholm Peace Research Institute, point out that sanctions should also cover companies dependent on state-owned conglomerates like Rostec, which controls Spetskhimiya. However, due to the global nature of the fertilizer market, completely blocking these supplies is extremely difficult.
Russian plants, such as factories in Dzerzhinsk and Biysk, which are set to receive acid supplies this year, are on the list of sanctioned entities. Despite this, further deliveries of fertilizers and components for the production of explosives will be carried out.
