Russian billionaires’ chemical firms fuel Moscow’s war effort – media

Reuters reported the information.

Chemical companies linked to five sanctioned billionaires, including Roman Abramovich and Vagit Alekperov, provided over 75% of key ingredients delivered by rail to Russian explosives factories since the start of the Ukraine war, according to data analyzed by Reuters.

These companies sustain the war effort, supplying essential chemicals while earning hard currency from civilian product exports, the article states. 

Abramovich and Alekperov declined to comment, while their companies claimed the chemicals were for “civilian use only.”

Chemicals for explosives

The factories receiving these shipments, including the Sverdlov plant, play a key role in producing high-powered explosives like HMX and RDX, critical for artillery and missiles. Reuters traced shipments of acetic and nitric acid from Eurochem, founded by billionaire Andrey Melnichenko, to the Sverdlov plant.

Eurochem’s chemicals could yield enough RDX to fill 500,000 large-caliber shells, according to experts. Despite claiming 97% of its output is fertilizers, Eurochem did not address questions about supplying explosives factories.

Uralchem, tied to billionaire Dmitry Mazepin, sent over 27,000 tons of ammonium nitrate, another key explosive ingredient, to the same plant. Both companies denied involvement in military production.

Billionaires under sanctions, firms evade them

While the billionaires face Western sanctions, their companies largely avoid penalties. The EU and U.S. exempt many chemical exports to prevent disruptions to global food supplies, as fertilizers remain vital for farming.

Sanctions targeting these companies might now warrant a second look, the article states.

A European Commission spokesperson, in response to questions about the chemicals companies, said: "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," and added that any action would only come after careful analysis of the effectiveness of any measures and their impact on European companies.

Rising military production

As Russia accelerates munitions manufacturing, the link between these chemical companies and defense production raises questions about sanction loopholes. The Sverdlov plant, for example, saw production spikes in 2023 to meet state defense orders.

The article emphasized the dual-use nature of the chemicals, saying they have civilian applications, but their role in supporting Russia’s war machine is undeniable.