MINEX Forum

Tag: sanctions

  • European Parliament Calls for EU Ban on Alumina Exports to Russia

    European Parliament Calls for EU Ban on Alumina Exports to Russia

    The European Parliament has adopted a non-binding resolution urging the European Commission to impose sanctions on alumina exports to Russia, increasing political pressure on Brussels to tighten restrictions on trade linked to Moscow’s metals industry.

    The motion follows an investigation by The Irish Times and the Organized Crime and Corruption Reporting Project (OCCRP), which found that Ireland’s Aughinish Alumina refinery has continued exporting substantial volumes of alumina to Russian smelters owned by Rusal. The resulting aluminium has reportedly been sold to Moscow-based trading company ASK, whose customer base includes more than 40 companies sanctioned by the European Union for their links to Russia’s defense sector.

    While investigators were unable to trace individual shipments of Irish alumina to specific military products because the material is blended during smelting, customs and trade data indicate that since 2023 more than half of Aughinish Alumina’s exports have been delivered to Russian smelters. Those facilities have subsequently sold more than $650 million worth of aluminium to ASK, which supplies companies associated with Russia’s military-industrial complex.

    The European Parliament’s resolution calls for stronger measures to limit Russia’s ability to finance its military operations in Ukraine. In addition to advocating a complete ban on alumina exports, lawmakers also supported proposals to blacklist Russian steel suppliers. Although the Parliament cannot impose sanctions itself, its position is expected to add pressure on the European Commission and EU member states, which must unanimously approve any new sanctions package.

    The Commission has so far refrained from restricting alumina exports because of Aughinish Alumina’s importance to European industrial supply chains. However, Irish Member of the European Parliament Barry Andrews argued that Irish alumina is highly likely to be contributing indirectly to Russia’s military production and called for immediate action if ongoing investigations confirm these links.

    The Irish government is completing its own investigation into Aughinish Alumina’s exports following the media reports. Prime Minister Micheál Martin said the findings will soon be submitted to the European Commission, while Enterprise Minister Peter Burke confirmed his department expects to finalize its report within days.

    Burke also rejected suggestions that Ireland had sought exemptions for Aughinish Alumina from EU sanctions, stating that the government has never lobbied on the company’s behalf and has not opposed any sanctions affecting its operations.

    The European Commission is expected to review the findings as it prepares its next package of sanctions against Russia.

  • Ukraine Creates Working Group to Address Challenges at Ferrexpo’s Poltava Mining

    Ukraine Creates Working Group to Address Challenges at Ferrexpo’s Poltava Mining

    Ukraine’s Verkhovna Rada Committee on Economic Development has established a working group to address key operational challenges facing mining companies, with the situation at the Poltava Mining and Processing Plant — part of the Ferrexpo group — becoming the first issue under review.

    According to Member of Parliament Oleksiy Movchan, the group held its initial meeting online with participation from representatives of the Ministry of Economy, the National Bank of Ukraine, the Ministry of Justice, the State Tax Service, industry associations, and management of the Poltava and Yeristovo mining and processing plants.

    Several major issues affecting the Poltava operation were discussed, including electricity shortages and high power costs, blocked VAT refunds, and outstanding foreign currency payments owed by the parent company.

    One of the most pressing challenges is the non-refund of value-added tax due to sanctions imposed on the company’s ultimate beneficiary, businessman Kostyantyn Zhevago.

    Dmytro Mospan, manager of legal support for financial activities at Poltava Mining and Processing Plant, said more than UAH 3 billion in VAT refunds remains blocked for the company.

    According to Mospan, the lack of access to these funds has forced the company to reduce the working week, cut social programmes, lower maintenance spending and scale back mining operations.

    The State Tax Service said the situation is governed strictly by the Tax Code of Ukraine. Under Article 200.4, VAT refunds cannot be issued to taxpayers whose ownership structure includes individuals under sanctions.

    Even in cases where courts have ruled in favour of the company, payments remain blocked. Funds are currently held by the State Treasury pending enforcement of court decisions but cannot be transferred due to provisions under Article 200.12 of the tax code.

    One court ruling alone has frozen approximately UAH 230 million related to the plant.

    The working group plans to further examine the company’s ownership structure at future meetings following additional reports from tax authorities.

    Energy supply is another major challenge for the enterprise. Company representatives said limited availability of electricity and high power prices are making operations increasingly unprofitable. However, officials noted that electricity costs are a broader issue affecting Ukraine’s entire mining and metallurgical sector.

    The matter is expected to be discussed further with the Ministry of Energy during upcoming sessions of the working group.

    Movchan also said Ferrexpo AG owes the Poltava operation more than $500 million in unpaid foreign currency proceeds.

    “This debt has been confirmed by international arbitration decisions and the figures have been verified by representatives of the National Bank,” he said.

    The issue will also be examined in subsequent meetings.

    Earlier this month, Ferrexpo announced it had restarted pellet production at the Poltava Mining and Processing Plant after suspending operations in January 2026. The restart was made possible by improvements in electricity supply and lower energy costs.

    According to GMK Center, Ukraine’s iron ore exports fell by 8% in 2025 compared with the previous year, totaling 30.99 million tonnes. In January–February 2026 exports declined even further, dropping 40.9% year-on-year to 3.31 million tonnes, the lowest level recorded since 2023.

  • Pasechnik Appeals to Putin for Funds Amid Mining Crisis in Occupied Luhansk

    Pasechnik Appeals to Putin for Funds Amid Mining Crisis in Occupied Luhansk

    Leonid Pasechnik, the Kremlin-appointed leader of the self-proclaimed Luhansk People’s Republic (LPR), has asked Russian President Vladimir Putin to help secure salary payments for miners in the occupied Luhansk region. According to Ukraine’s Center for Countering Disinformation (CCD), Pasechnik’s appeal reflects the severe deterioration of the mining sector, where most mines have been handed over to Russian companies.

    These operators had pledged investment but later declared the mines unprofitable, opting instead to mothball or liquidate production. The CCD reports that the situation has left many miners without pay, creating a desperate social and economic crisis in the region.

    The challenges are compounded by Russia’s own coal sector, which is suffering under international sanctions and the loss of export markets. Mines across Russia are shutting down, wages are going unpaid, and layoffs are spreading — leaving little incentive for companies to inject resources into the occupied Donbas territories.

    The mining crisis unfolds as Moscow grapples with broader financial troubles. The Russian government projects a $68 billion budget deficit by the end of 2025, nearly double previous forecasts, driven by falling oil and gas revenues and soaring wartime expenditures.

  • EU Clamps Down on China Trade Imbalance Despite Rare Earth Breakthrough

    EU Clamps Down on China Trade Imbalance Despite Rare Earth Breakthrough

    The EU, after a one-day summit in Beijing, struck a tentative deal with China to ease export restrictions on crucial rare earths. However, the bloc remains resolute in its demand for a significant rebalancing of trade relations, amidst lingering tensions over industrial overcapacity and market access.

    Trade Concerns Remain Despite Rare Earth Deal:

    • The EU welcomed China’s rapid-fire approval of rare earth export licenses and a new oversight system for supply chain issues, addressing concerns triggered by Beijing’s earlier restrictions.
    • However, EU leaders emphasized the need for further progress to tackle the €300 billion trade deficit with China in 2024, exceeding the bloc’s acceptance of “fair competition” and calling for greater market access in China for European businesses.

    Key Points of Contention:

    • Market Access: The EU insists on reciprocal market access for its companies, similar to the access enjoyed by Chinese firms in Europe, highlighting persistent discrepancies in access and treatment.
    • Industrial Overcapacity: Brussels remains critical of China’s use of subsidies to fuel domestic industries, creating artificial competition and cutting into European firms’ market share.
    • Ukraine War: The EU criticized China’s support for Russia, accusing it of enabling the ongoing conflict, despite China’s denial.

    Impact of Recent Trade Disputes:

    • The recent trade dispute over electric vehicle tariffs was exemplified by the EU’s imposition of duties on Chinese-made EV imports, followed by retaliatory moves from Beijing targeting EU agricultural products.

    Looking Forward:

    • While the summit yielded progress on rare earths, fundamental disagreements persist regarding trade imbalance, market access, industrial practices, and China’s role in the Russia-Ukraine war.
    • The EU warned that failure to address these issues could compel it to reconsider its openness to Chinese trade and investment.

    Overall Tone:

    The summit signals a mixed bag for EU-China relations. While the rare earth accord offers a glimmer of hope, deep-rooted trade concerns and political disagreements suggest a more complex and potentially volatile future.

  • Solidcore Reports Sharp Drop in Gold Output and Revenue Due to Sanctions and Delays

    Solidcore Reports Sharp Drop in Gold Output and Revenue Due to Sanctions and Delays

    Solidcore Resources reported a significant decline in gold-equivalent output for Q1 2025, producing 68,000 ounces — a 42% decrease compared to the same period last year. The company attributed the shortfall to delays in shipping concentrates from the Bakyrchik deposit (part of the Kyzyl project) to the Amur Hydrometallurgical Plant.
    In its statement, Solidcore highlighted ongoing “operational challenges” at the plant in Russia’s Khabarovsk region due to international sanctions. Last year, the company divested its Russian assets to Mangazeya Mining.
    As Solidcore prepares to launch the Irtysh Hydrometallurgical Complex in Kazakhstan’s Pavlodar region, it remains reliant on Russian facilities for processing its complex refractory and double-refractory ores. As a result, 41,000 ounces of gold in concentrate have accumulated over the quarter, with shipments to Amursk now expected to resume in May.
    The production drop was accompanied by a steep fall in sales: only 38,000 ounces of finished product were sold in Q1, down 67% year-on-year. Revenue shrank 2.7 times to $109 million.
    Despite these setbacks, ore extraction rose by 13% to 1.32 million tonnes, mainly due to the Kyzyl project. Total ore processing remained stable at 1.57 million tonnes. At the Varvarinskoye site, ore grades declined as expected, while Bakyrchik saw an improvement.

  • Europe’s Aerospace Industry Faces Titanium Dependency Challenge Amid Sanctions

    Europe’s Aerospace Industry Faces Titanium Dependency Challenge Amid Sanctions

    Fans of Apple’s titanium-cased iPhones need not worry about a material shortage. Although Russian President Vladimir Putin has suggested capping exports of titanium in response to Western sanctions, China remains Apple’smain supplier, ensuring that the company will not need to switch back to stainless steel. However, the European aerospace sector faces more significant challenges. VSMPO-AVISMA, the world’s largest titanium producer, supplies a considerable portion of the European market, and while Europe has restricted imports of many Russian metals, titaniumhas remained largely unaffected by these sanctions.

    In February, when Canada imposed sanctions on VSMPO-AVISMA, French President Emmanuel Macronpersonally intervened to secure waivers for Airbus and other aerospace companies, illustrating the deep reliance on Russian titanium. This dependency is difficult to break because titanium is a critical component in aircraft manufacturing due to its strength, light weight, and corrosion resistance.

    Europe’s problem is compounded by the fact that it lacks significant domestic capacity for producing aviation-grade titanium, which requires extremely high purity levels and specialized accreditation from aircraft manufacturers like Airbus and Boeing. As a result, Europe risks replacing its dependence on Russia with a reliance on U.S. titanium suppliers, especially since the U.S. receives nearly 70% of Europe’s titanium scrap.

    Breaking this transatlantic loop is crucial as the European Union’s Critical Raw Materials Act sets ambitious goals for domestic extraction and recycling by 2030. While Ukraine may offer a potential future supply of titanium, European recycling capabilities must be expanded to meet the short-term demand. Government-level negotiations between Europeand the U.S. are likely needed to reshape the titanium supply chain.

  • Putin Suggests Limiting Exports of Uranium, Titanium, and Nickel in Response to Western Sanctions

    Putin Suggests Limiting Exports of Uranium, Titanium, and Nickel in Response to Western Sanctions

    On Wednesday, Russian President Vladimir Putin proposed that Moscow should consider imposing export restrictions on key commodities such as uranium, titanium, and nickel in response to Western sanctions. During a televised meeting with Prime Minister Mikhail Mishustin, Putin stated, “Please take a look at some of the types of goods that we supply to the world market… Maybe we should think about certain restrictions – uranium, titanium, nickel.”

    Russia ranks as the fourth largest uranium producer globally, according to the World Nuclear Association. This suggestion follows U.S. President Joe Biden’s recent signing of a law that bans the import of enriched uranium from Russia, a trade valued at approximately $1 billion annually.

    In 2023, the United States and China were the largest importers of Russian uranium, followed by South Korea, France, Kazakhstan, and Germany. Additionally, Russia holds the position of the world’s third largest titanium sponge producer, a material used in the aerospace, marine, and automotive industries, despite having limited domestic titanium reserves. Russia’s Nornickel is also the leading producer of refined nickel worldwide.

     

  • Kazakh Coal Producer “Bogatyr Komir” Maintains Supply Agreement with Russian Company Despite U.S. Sanctions

    Kazakh Coal Producer “Bogatyr Komir” Maintains Supply Agreement with Russian Company Despite U.S. Sanctions

    Despite U.S. sanctions, the agreements between the Kazakh coal producer “Bogatyr Komir” and the Russian coal and energy company SUEK remain intact for regular fuel deliveries, as reported by inbusiness.kz.

    “TOO Bogatyr Komir” is a joint venture between AO Samruk-Energo and Rusal. Concerns had arisen over potential secondary sanctions against the coal mining company due to the inclusion of the Russian buyer, Siberian Coal Energy Company (SUEK), in the U.S. sanctions list.

    Annually, up to 10 million tons of “Bogatyr” fuel were shipped to the affiliated Reftinskaya GRES linked to SUEK.

    According to the “Bogatyr Komir” report, the Kazakh coal producer is operating at full capacity, fulfilling all obligations regarding extraction and export. Between January and April 2024, they extracted and shipped 15,255 thousand tons of coal, with 2,584 thousand tons shipped to Russia. These figures slightly decreased compared to last year, which saw 15,488 thousand tons extracted and 3,343 thousand tons shipped to Russia.

  • US and UK Impose Restrictions on Russian Metal Imports Amid Ukraine Conflict

    US and UK Impose Restrictions on Russian Metal Imports Amid Ukraine Conflict

    In a joint effort to disrupt Russian export revenue amidst the ongoing conflict in Ukraine, Washington and London have announced measures prohibiting metal-trading exchanges from accepting new aluminum, copper, and nickel produced by Russia. The move comes as part of broader sanctions targeting key Russian industries following Moscow’s invasion of Ukraine, which has resulted in significant casualties and widespread destruction.

    Russia, a major producer of aluminum, copper, and nickel, stands to be significantly impacted by the restrictions imposed by the United States and the United Kingdom. The measures aim to limit Russia’s ability to finance its military campaign in Ukraine by curbing revenue generated from metal exports.

    Both the US Treasury Department and UK officials emphasized the targeted nature of the sanctions, designed to minimize disruption to global metal markets while effectively restricting new Russian metal production. Existing stocks of Russian metal on global exchanges will be exempt from the restrictions to mitigate potential market instability.

    While bilateral contracts will not be affected by the measures, trading of Russian metals off the exchanges is expected to face discounts, thereby reducing Russia’s revenue from metal exports. The US and UK authorities will closely monitor the trading of Russian metal elsewhere to ensure compliance with the sanctions.

    The action marks the latest escalation in sanctions against Russia by Western nations in response to its invasion of Ukraine in February 2022. The US and UK had previously implemented economic measures targeting the metals and mining sector, with tariffs imposed on Russian metal imports.

  • Kazatomprom: Nuclear Power Demand Surges Amid Geopolitical Uncertainty

    Kazatomprom: Nuclear Power Demand Surges Amid Geopolitical Uncertainty

    Kazatomprom’s CEO, Meirzhan Yussupov, highlighted a significant surge in the demand for nuclear power amidst geopolitical tensions in 2023. Yussupov stated that despite the challenges, the demand for nuclear energy, being a stable and low-carbon source, notably increased. With Kazakhstan contributing around 40% of the global uranium production annually, Yussupov proudly mentioned that approximately every third nuclear reactor worldwide is powered by Kazakh uranium.

    The company emphasized its role in the energy security agenda amidst ongoing global geopolitical uncertainties. Operating in an ESG-compliant and low-risk jurisdiction, Kazatomprom positions itself as a reliable supplier of natural uranium, ready to cater to utilities’ needs in diversifying their supply sources.

    Addressing the impacts of international sanctions, Kazatomprom reiterated its commitment to assessing and monitoring sanctions risks continuously. The company has developed action plans to mitigate negative impacts on its activities, adapting them to evolving risks and updates.

    Regarding financial resilience amid geopolitical tensions, Kazatomprom stated that events in Ukraine have not affected its financial position significantly. Majority of its revenues are in US dollars, providing a natural hedge against currency risks.

    The company has taken cautious steps regarding operations involving Russian banks under active international sanctions processes. Additionally, it continues to assess risks associated with its contracts, such as uranium processing with entities in the Russian Federation.

    Despite potential challenges in transportation due to sanctions, Kazatomprom assures uninterrupted supply to end customers, thanks to continuous monitoring and the Trans-Caspian International Transport Route.

    Regarding proposed US legislation on Russian enriched uranium imports, Kazatomprom clarified that it wouldn’t impact its primary business of natural uranium production.

    The company reported a significant revenue increase in 2023, attributed to higher average realized prices, increased sales volumes, and revenue growth from fuel assembly and rare metal products segments.

    Looking ahead, Kazatomprom expects uranium production volumes for 2024 to remain consistent, but acknowledges uncertainties due to construction delays at new sites, which may affect operating performance.