Oligarchs' chemical firms fuel Russia's wartime resilience
Chemical plants owned by Russian oligarchs contribute to the war effort by providing substances for explosive production. Reuters reports that despite sanctions, these companies continue to operate, bolstering the Russian wartime economy.
Chemical plants in Russia, controlled by oligarchs, play a crucial role in supporting the war effort. According to Reuters, an analysis of invoices and transportation data shows that these factories supply substances for the production of explosives and foreign currencies.
The owners of two of these companies include 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, 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 stress that in addition to components for weapons production, these plants provide Russia with essential foreign currencies, highlighting the reliance of the Russian war machine on oligarchs.
Russian war machine relies on oligarchs
This analysis, combined with expert assessments, shows how much the Russian war machine depends on oligarchs and their companies, while also illustrating that western sanctions have not effectively limited arms production, emphasizes Reuters.
While oligarchs are subject to restrictions, these cannot be imposed on companies producing artificial fertilizers, in keeping with the principle that sanction policies exempt companies impacting food production.
Manish Raizada, a professor at the University of Guelph, warned in an interview that changing this tradition would jeopardize 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."
Meanwhile, several Ukrainian commanders have told Reuters in interviews that the war with Russia has become an "artillery duel," where the availability of powerful explosives is crucial, giving Russia a significant advantage amid insufficient supplies of Western weapons to Kyiv.
