NewsFinnish spike exports to Russia surge, raise sanctions concerns

Finnish spike exports to Russia surge, raise sanctions concerns

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 this increase. These spikes are not subject to sanctions, but there is a risk they could be used for military purposes on the front lines. The co-owner of the company is the wife of the education minister, reports the Finnish broadcaster Yle.

Russians are massively buying Finnish spikes for winter tires. There is a concern that they are ending up on the front line.
Russians are massively buying Finnish spikes for winter tires. There is a concern that they are ending up on the front line.
Images source: © Getty Images | 2024 Anadolu
Katarzyna Kalus

24 November 2024 08:08

In the first three quarters of this year, the value of aluminum exports to Russia exceeded 34 million CAD. In the same period of 2023, it was just over 15.5 million CAD, according to Finnish customs data. Aluminum products are exported across the eastern border directly by ship or through the Baltic countries.

A significant share of the aluminum exports, as well as the total volume of exports to Russia, is held by winter tire spikes. In Finland, there are three companies involved in their production. However, only products from one of them, Turvanasta, are exported to Russia, highlighted Yle in the report. The plant from Turku, established in the late 1980s and producing an average of one billion spikes annually, is a world leader in this industry.

The Finnish public broadcaster also points out 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 subject to international sanctions imposed on Russia. If the goods are not on the list and there are no obstacles to export, it depends solely on the company's decision whether to maintain trade with the east, according to the Finnish Ministry of Foreign Affairs in a comment, emphasizing that there is a risk that spikes used in many vehicles could also enter the arms industry and be used for military purposes at the front.

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. According to him, closing the plant would be a greater problem "from a moral standpoint" because it would result in lower revenues, taxes, and job losses. Russians would still have spiked tires from China if their production was halted in Europe, 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 entities systematically decreased, and currently, fewer than 50 companies declare exports. The situation is similar regarding the import of goods from Russia. Currently, a dozen or so companies are engaged in this, while three years ago, there were nearly 500.

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