Finnish tire spike exports to Russia soar despite risks
The value of Finnish aluminum exports to Russia has doubled this year compared to 2023. A family business from Turku, a global producer of spikes for winter tires, is responsible for the increase. These spikes are not subject to sanctions, but there is a risk they could be used for military purposes. The co-owner of the company is the wife of the Minister of Education, reports the Finnish broadcaster Yle.
8:07 AM EST, November 24, 2024
In the first three quarters of this year, the value of aluminum exports to Russia exceeded 24 million USD. During the same period in 2023, it amounted to just over 11.5 million USD, according to Finnish customs data. Aluminum products are exported across the eastern border directly by ship or through the Baltic countries.
Winter tire spikes hold a significant share in aluminum exports as well as in overall exports to Russia. In Finland, three companies produce these spikes, but only Turvanasta exports them to Russia, Yle's report highlights. The Turku-based company, established in the late 1980s, produces an average of one billion spikes annually and is a world leader in this industry.
The Finnish public broadcaster also mentions that one of the co-owners of the company is Ia Adlercreutz, a relative of the company's director and the wife of Anders Adlercreutz, the Minister of Education and leader of the Swedish People's Party (RKP-SFP).
Aluminum spikes are not covered by international sanctions imposed on Russia. If the goods are not on the restricted list and there are no barriers to export, it is up to the company to decide whether to continue trading with Russia, according to the Finnish Ministry of Foreign Affairs. However, the Ministry emphasized that there is a risk that spikes, which are used in many vehicles, could be diverted to the military and used for military purposes.
The company does not know where the spikes end up
When fulfilling an order, the company has no information on the final destination of the spikes, says Mikko Salakari, director of Turvanasta. He believes that shutting down the plant would pose a larger "moral problem" due to decreased revenues, taxes, and job losses. Even if production in Europe were halted, Russians could still obtain spiked tires from China, he concluded.
According to customs office statistics, at the end of 2021, over 900 companies were involved in exports across the eastern border. After Russia's attack on Ukraine, the number of these entities systematically decreased, and currently, fewer than 50 companies declare exports. The situation is similar concerning the imports of goods from Russia; whereas three years ago, nearly 500 companies were engaged in this, now only about a dozen remain.
