Russian oligarchs' chemical factories fuel war effort

Chemical plants in Russia, controlled by oligarchs, play a crucial role in sustaining the war effort. According to "Reuters", analysis of invoices and transportation data shows that these factories supply substances for the production of explosives and western currencies.

The owners of two of these companies are 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 £22.8 billion. Abramovich holds a 28% stake in the steel sector company Evraz, listed on the London Stock Exchange.

Reuters analysed 600,000 rail transports and financial data, confirming that several chemical plants provide materials to four manufacturers of explosives. Experts emphasise that in addition to components for weapons production, these plants provide Russia with essential foreign currencies, highlighting how much the Russian war effort relies on oligarchs.

This analysis, combined with expert assessment, shows how significantly the Russian war effort depends on oligarchs and their companies, while also illustrating how western sanctions have not succeeded in limiting arms production - highlights Reuters.

While oligarchs are subject to restrictions, these cannot be imposed on companies producing artificial fertilisers, in line with the long-standing principle that sanction policies exempt companies impacting food production.

Manish Raizada, a professor at the University of Guelph in Canada, warned in an interview with the agency that attempting to change this tradition would threaten hundreds of millions of small farms worldwide, with minimal impact on Russia's wartime economy.

The US 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, numerous 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.