Russian oligarchs fuel war effort with chemical supplies

Chemical plants in Russia, controlled by oligarchs, play a key role in sustaining the war effort. According to Reuters, analysis of invoices and transportation data shows that these factories supply substances crucial for explosives and generate foreign currency revenue.

The owners of two of these companies are Roman Abramovich, the former owner of the British football club Chelsea FC, and Vagit Alekperov, the president of the oil company Lukoil, whose wealth is estimated by Forbes at $28.6 billion. Abramovich holds a 28% stake in the steel company Evraz, which is listed on the London Stock Exchange.

Reuters analyzed 600,000 rail transports and financial data, confirming that several chemical plants supply materials to four explosive manufacturers. Experts emphasize that in addition to components for weapons production, these plants provide Russia with needed foreign currencies, highlighting the reliance of the Russian war machine on oligarchs.

This analysis, combined with expert assessments, shows how critical the Russian war machine's reliance on oligarchs and their companies is, while also illustrating how western sanctions have not successfully limited arms production, as emphasized by Reuters.

While oligarchs are subject to restrictions, companies producing artificial fertilizers are exempt, in accordance with the longstanding principle that sanction policies exempt companies that impact food production.

Manish Raizada, a professor at the University of Guelph in Canada, warned in an interview with the agency that attempting to change this tradition would threaten hundreds of millions of small farms worldwide, with minimal impact on Russia's wartime economy.

The U.S. Department of the Treasury did not respond to Reuters' request for comment. Meanwhile, a spokesperson for the European Commission stated that "we are actively exploring the possibilities for additional measures to step up pressure and close loopholes in a manner that would avoid negative implications for food security."

Numerous Ukrainian commanders have told Reuters in interviews that the war with Russia has become an "artillery duel," with the availability of powerful explosives being crucial. This gives Russia a significant advantage amid insufficient supplies of western weapons to Kyiv.