Ukrainian Journalist Calls for Investigation into Alleged Sanctions Circumvention by Russian Metal Producers
Oksana Kotomkina, a Ukrainian journalist and coordinator of the legal publication Konflikty i zakony, has filed a formal complaint with the Security Service of Ukraine and the Prosecutor General's Office. She has called for an investigation into the activities of certain companies allegedly involved in circumventing international sanctions on Russian metals. According to her analysis, these activities may involve complex trade routes used to bypass restrictions and allow Russian goods to reach global markets.
In an article published on the Ukrainian news website GordonUA, Kotomkina outlines her concerns, emphasizing the importance of robust mechanisms to enforce sanctions. She notes that while sanctions have had a significant impact on the Russian economy, addressing their circumvention is equally critical. Russia, she argues, has consistently sought ways to navigate around restrictions to sustain its economy and, by extension, its military operations.
Kotomkina cites international efforts to close such loopholes, including the United States' planned sanctions on shadow fleets transporting Russian oil. Ukrainian President Volodymyr Zelenskyy has also highlighted the issue, stating that Ukraine has shared information with European partners about companies allegedly continuing trade with Russia despite sanctions.
Allegations Against MidUral and Associated Companies
Kotomkina's article references an investigation by Oleksandr Liemienov, founder of the watchdog organization StateWatch. According to this investigation (which you can read here and here), the Russian metallurgical holding MidUral, led by Sergii Gilvarg, allegedly uses a network of intermediary companies to evade sanctions on metallic chromium, a material critical for Russia's industrial and military sectors. The investigation claims that Swiss businessman Oleg Tsyura, who has Ukrainian origins, is connected to these operations through his involvement with Swiss companies.
The reported scheme involves Swiss entities such as Phoenix Resources AG purchasing ferrochrome from Russia's MidUral. This ferrochrome is then reportedly sold to Vardhman Ferro Alloys, an Indian company, before being exported to Europe under the guise of Indian-origin goods.
Evidence and Discrepancies
Kotomkina points to trade data indicating shipments of ferrochrome originating from Russia but re-labeled as Indian products during transit. For instance, records show a shipment on July 26, 2024, of 24 tons of ferrochrome from Rotterdam to Mumbai, labeled with Russia as the country of origin. However, subsequent transactions involving the same goods listed India as the source country.
According to trade databases like ImportGenius, Vardhman Ferro Alloys has supplied metals to various countries, but the data indicates discrepancies between the company's reported trade reach and actual direct transactions. Kotomkina suggests this highlights the use of intermediary routes to obscure the true origin of goods.
Calls for Action
Kotomkina underscores the importance of governmental and law enforcement involvement in investigating these claims. She asserts that such schemes not only undermine the sanctions regime but also enable financial flows that could support Russia's military activities.
"This chain allows Russian manufacturers to circumvent sanctions and maintain foreign exchange earnings, indirectly strengthening the country's military-industrial complex," Kotomkina writes. She stresses that her findings, alongside those presented by StateWatch, provide sufficient grounds to open a criminal investigation.
Legal Implications
Kotomkina believes the documented evidence warrants scrutiny under Ukrainian law, particularly Article 110-2, which addresses financing actions aimed at undermining Ukraine's constitutional order or territorial integrity. While acknowledging that journalists have limited resources compared to law enforcement agencies, she hopes her report will prompt action from Ukrainian authorities.
A Broader Issue
The journalist concludes that the alleged scheme involving MidUral and its partners may represent just one example of a larger problem. She calls for increased vigilance and collaboration between Ukraine and its international allies to identify and dismantle similar networks.
By bringing these claims to light, Kotomkina hopes to contribute to the global effort to uphold sanctions and prevent their circumvention, thereby supporting Ukraine's defense against external aggression.
