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Sources say that Venezuela's opposition will soon lose control of US refiner Citgo
The Venezuelan opposition-controlled boards that have supervised U.S.-based refiner Citgo Petroleum for ?the last seven years are preparing to ?wind down as soon as this ?month, ?following a shake-up by Venezuelan interim President Delcy Rodriguez, two sources involved in the preparations said. Rodriguez started preparing to take control of the refinery owned by Venezuela earlier this year after Washington recognized her government. Her government replaced Nicolas Maduro’s administration, after he had been captured by U.S. troops in January. According to U.S. courts filings, the interim president's administration replaced law firms who had previously?represented Venezuelan and state-run PDVSA oil company in lawsuits and arbitral cases abroad. They were hired by a National Assembly led by opposition. One source said, "The boards no longer have the support of all legal and political counterparts. They can't continue." This is unfortunately happening without any prior discussion. The Venezuelan oil ministry, PDVSA and Citgo, as well as the supervising board, did not respond to comments immediately. Following U.S. imposition of sanctions on Venezuela's energy sector in 2019, Houston-based ?Citgo severed ties with its parent, Caracas-headquartered ?PDVSA, under orders from a National Assembly that the opposition then controlled. Even after the Venezuelan government lost control over the assembly, opposition-led boards in other countries continued to supervise the refiner. They were also involved in the appointment of its board of directors. CITGO AUCTION LOOMS: STATUS Unrealized is a U.S. court auction, in which a judge accepted a bid from an affiliate hedge fund Elliott Investment Management for Citgo Holding Company to pay creditors who are pursuing the refiner. The sale is awaiting final approval by the U.S. Treasury Department which has been protecting Citgo against creditors in recent years. Treasury extended the protection of a license to September 17 in early August. The U.S. Court of Appeals, which is considering the challenges against the 'auction process', has set an October hearing. After that date the court will rule on refiner ownership. The administration of Rodriguez has labelled the court-ordered sales as "theft", but it's unclear what it will do next as it works with Washington to revive OPEC's country's oil industry. The sources stated that Citgo's board and executive team led by CEO Carlos Jorda will not be changing anytime soon. Citgo remains profitable under the Venezuelan opposition?oversight. Citgo has recently gained access to Venezuelan crude oil for refining. The company registered a net income of 936 million dollars in the second quarter. This is up from 100 million dollars in the same period in last year, despite solid margins.
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Wall Street falls as investors worry about inflation and $100 oil
Wall Street closed lower on Wednesday as 'oil prices' remained at $100 per barrel, despite ongoing Gulf tensions. Inflation fears and Gulf tensions continued to weigh on investors. The three major U.S. indexes all ended the day in a lower position. The Dow Jones Industrial Average fell by 0.77%. The S&P 500 was down 0.48%, and the Nasdaq composite shed 0.64%. MSCI's global stock index fell 0.52% after the U.S. close. The stock market was down all day as headlines focused on the oil price surging above $100 per barrel for first time since last July. Iran claimed it had attacked ten ships near the Strait of Hormuz following the U.S. sinking of five Iranian oil tanks. Brent crude closed the day up?3.4%, or $101.11 a barrel. U.S. West Texas Intermediate CLc1 rose $3.02 or 3.25% to $96.05 per barrel. These were the two highest closing prices since May. The Treasury Department announced that it would purchase up to $6 billion of 10-to-20-year bonds. The Treasury Department had originally indicated a $4 billion buyback. However, the actual amount was $6 billion. Analysts had expected a bigger purchase to support bonds with longer duration. Brent breaking above $100 marks a significant psychological milestone for the markets. But what it means for inflation is of greater concern. "A prolonged oil shock may keep prices high and complicate central bank policy," said Lukman otunuga, FXTM's head of market analysis. CENTRAL BANK BANK DECISIONS AHEAD The euro edged up ahead of Thursday's European Central Bank policy decision, with markets expecting a rate increase due to inflationary forces from the Iran War. As traders redeemed their short positions, the yen rose to a level not seen in nearly seven months. There are growing expectations for Bank of Japan rate increases and the potential of a rush of Japanese capital repatriation. The dollar index, which measures greenbacks against a basket including yens and euros, increased 0.05% to reach 98.83. The U.S. consumer and producer price reports will be released this week. Policymakers are looking for more evidence that inflation is continuing to cool. In the latest survey, about 70% of economists expect that the Federal Reserve will keep rates stable at its next policy meeting. This is below the 90% of economists who expected the same thing in August. Matthew Ryan, Head of Market Strategy at global financial services company Ebury, said: "Financial market participants are genuinely divided over whether the FOMC will increase rates at its September meeting next week. This is an unusual level of uncertainty so close to a deadline." Gold rose by 0.98%, to $4,396 per ounce.
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S&P 500 closes down as oil reaches $100 per barrel
U.S. stock prices closed lower on the day as oil 'prices' soared over $100 per barrel. Apple also fell and Treasury yields increased?ahead of?important inflation data due later this week. Brent crude soared above $100 per barrel on concerns about global oil supplies and an increase in Middle East tensions. This is a critical level for the stock exchange. The U.S. and Israeli war against Iran, which is now in its seventh-month, has stoked fear of a broader conflict within the region, while high oil prices are fueling inflation. All other sector indexes declined, but the S&P 500 Energy Index rose. Treasury Department announced it would purchase up to $6 billion of 10-to-20 year government bonds. Some analysts expected a bigger purchase in the $8 billion to $100 billion range. Stocks are less appealing to investors when they have higher yields on government bonds. Rob Haworth is a senior investment strategist with U.S. Bank Wealth Management, Seattle. The Federal Reserve will look at the U.S. Producer Price Index on Thursday, and consumer prices on Friday to determine its interest rate path. The Fed is expected to raise interest rates by 60% at its next policy meeting. The S&P 500 fell 36.36 points or 0.47% to 7,637.16 while the Nasdaq Composite dropped 164.77 or 0.62% to?26.256.64. The Dow Jones Industrial Average dropped 403.65 points or 0.76% to 52,382.42. The S&P is down around 2% from its record-breaking close on August 13, and remains about 12% higher in 2026. Meta jumped, and the S&P 500 declined less after the social'media company rolled-out a much-touted AI Assistant that can automatically send emails,'sell a car, or make travel reservations on behalf of its users. Alphabet declined to bid after Google parent announced it would invest $15.1 billion over the next two years in 'AI infrastructure' in Finland, including a large deal for the supply of nuclear energy. Advanced Micro Devices gained on the Philadelphia Semiconductor index. Dow dropped after Bloomberg News reported that the chemicals manufacturer was considering ending its $20 billion partnership agreement with Saudi Aramco.
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Oil and Treasury yields rise as stocks fall
Brent crude prices soared to $100 per barrel on Wednesday, and the yield on 10-year Treasury bonds hit its highest level since November 20, 2023. Middle East?and inflation fears weighed on Wall Street. Brent crude reached $100.27 a barrel at midday, an increase of 2.4% for the day. This is the first time the price has breached the symbolic level since July 24. After Iran claimed it had fired ballistic missiles against a U.S. military base in Jordan, and both sides claiming to have attacked vessels. Treasury Department announced that it would purchase up to $6 billion of?10 to 20-year government securities. The Treasury Department had initially indicated a $4 billion buyback, but analysts expected a larger amount as part of?a bid to support long-duration bonds. Globally, stocks were down amid Middle East turmoil as well as looming action from several central bankers including the Federal Reserve. All three major U.S. All three major?U.S. The MSCI index of stocks around the world fell by 0.42%. Brent breaking above $100 marks a significant psychological milestone for the markets. But what it means for inflation is of greater concern. "A prolonged oil shock may keep prices high and complicate central bank policy," said Lukman otunuga, FXTM's head of market analysis. CENTRAL BANK BANK DECISIONS AHEAD The euro rose ahead of Thursday's ECB policy announcement, as markets were expecting a rise amid inflationary pressures caused by the Iran War. The currency hit a high of $1.16493, which is higher than the previous week's. As traders retreated from short positions in the Japanese currency, the yen gained strength and reached a high of nearly seven months. There are growing expectations for faster Bank of Japan interest rate increases and a possible rush of repatriation of Japanese capital. The dollar index fell by 0.03%, to 98.75, measuring the greenback in relation to a basket including the yen, the euro and other currencies. The U.S. consumer and producer price reports will be released this week. Policymakers are looking for more evidence that inflation is continuing to cool. In the latest survey, 70% of economists expect the Federal Reserve will keep rates stable at its rate-setting session next week. However, this certainty is below the 90% of economists who expected rates to remain steady in August. Matthew Ryan, Head of Market Strategy at global financial services company Ebury, said: "Financial market participants are genuinely divided on whether the FOMC is going to raise rates next week at its September meeting. This unusual uncertainty comes so close to the decision date." Gold rose 1.5% to $4,417 per ounce.
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US States sue Trump Administration for weakening endangered animal protections
On Wednesday, two U.S. state filed lawsuits accusing President Donald Trump's administration?of illegally weakening federal Endangered Species Act. This landmark law has protected the bald?eagle from the dangers posed by the development. In a?one? lawsuit, states challenged a law that narrowed a definition of harm. This had included habitats where animals were endangered. Oil drilling, mining, and other activities are allowed in these habitats as long as they do not directly harm or kill the animals. Two rules are at issue in the other lawsuit. The first rule "eliminates protections for new threatened species, unless the U.S. Fish and Wildlife Service will create species-specific protections. The second rule states that the government must consider objections from developers, fossil-fuel companies and other businesses prior to declaring areas as "critical habitats." Letitia J., New York Attorney general, said that the attorneys general of 20 states as well as the District of Columbia filed one or both lawsuits. The Endangered Species Act, passed by Congress in 1973 has been credited for saving a number of animals, including the California Condor, Grizzly Bear and Humpback Whale from extinction. Trump's goal is to reduce regulations, which he claims are a constraint on American businesses. This includes the scaling back of various environmental initiatives and standards. Wildlife advocates often consider habitat destruction to be the leading cause of animal extinction. Interior Secretary Doug 'Burgum said that the Endangered Species Act had been "weaponized". This has weakened competitiveness, undermined national security and hurt Americans' pockets. He said that the new rules aligned the law more closely with its original intention. The changes are a result of the U.S. Supreme Court ruling in 2024 that overruled a precedent dating back 40 years, which required courts to give deference to federal agencies reasonable interpretations on laws they administer.
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GE Aerospace's jet engine supply is dependent on the 'black arts' of castings
GE Aerospace, a leader in the aerospace industry, has acted to reduce shortages of precision parts for jet engines while securing valuable technologies. It did this by purchasing Consolidated Precision Products at a price of $12 billion. The purchase of CPP, the world's third largest manufacturer of metallic components for engine blades, is part and parcel of a long-term effort to improve aerospace supply chains. Larry Culp of GE Aerospace, who announced his largest acquisition after splitting the industrial giant General Electric and turning it around, described this capacity as "mission-critical". The deal shows a shift in focus from winning new orders towards production strategy for the aerospace industry. Its biggest challenge is to deliver on order books that are seven to ten years old. INDUSTRIAL CHOKEPOINT Since the COVID-19 pandemic, castings -- which are parts made of liquid metal but difficult to produce in large quantities -- and forgings (which are made of solid metal, and equally hard to manufacture) have been the most stubborn chokepoints within the industry. GE's competitors also want to?address this issue. Pratt & Whitney announced last year that it would be adding a casting foundry to its North Carolina facility, while Rolls-Royce will expand an existing British plant. Analysts say that turbine blades are the most expensive aerospace products because they use a combination of age-old techniques, such as?wax replications, and cutting-edge technology to resist temperatures above their melting points. The engines have also been the source of larger?production snags that fuel tensions between the airline industry and the engine industry. The few players who have invested and acquired specialist knowledge over decades are difficult to copy and keep prices high. Kevin Michaels, Managing Director of AeroDynamic Advisory, said: "It is the black art?of manufacturing that has always been a big barrier." "It's the hardest thing to make a new design... you might have to throw out half or more of your work (to create a new one)," he said. Jefferies reports that CPP is among the four largest global suppliers of such castings, and provides a quarter GE's requirements. Industry sources claim that GE has been courting the Ohio-based company for many years, as it seeks to insure against disruptions from larger suppliers Howmet and Precision Castparts Corp. DEAL WILL BE ANTITRUST SCRUTINED Bottlenecks are not the only reason for expansion. GE plans to utilize its LEAN Production System to increase efficiency and reap greater rewards. Analysts claim that the IPO and turnaround of UK counterpart Doncasters set a new tone. A strategic competition between engine developers is also centered around castings and forgings. Michaels stated that China also wants a piece of the market. Jerrold Lundquist of The Lundquist Group said that GE is expecting a financial return from the deal. It also gives them the opportunity to own a critical piece of the engine supply chain. Elon Musk highlighted the broader?competition in advanced metal parts last week when he posted that SpaceX's plans to manage separate?castings on-site would be "a profound game-changer". Deals such as GE's do not come without risk. Deals like GE's are not without risk. Howmet CEO John Plant stated on Wednesday that he was "fine with the deal". The deal will also be subject to?antitrust review. GE will likely point out its ownership of Italian gear manufacturer Avio Aero, a major Pratt & Whitney supplier. Matteo Peraldo is an aerospace and defense partner with U.S. based AlixPartners. He said: "I expect GE will be required to divest some facilities, making integration and any carve outs related to that process quite complex."
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US to help Kenya develop its critical mineral processing
A senior American official stated on Wednesday that the United States would help Kenya develop an important minerals processing industry. This was in response to the rivalry between China &?the US. Over access to essential minerals. Kenya is considering bids for the development of Mrima Hill, a coastal deposit that is estimated to contain rare earth minerals worth tens and billions of dollars, as well as niobium - a metal commonly used in aerospace manufacturing. Frank Garcia, Assistant Secretary of State for Africa, said at a meeting of a Kenyan business lobby group, the American Chamber of Commerce, that "critical minerals" are a priority for both President (Donald Trump) Trump and Secretary of State (Marco) Rubio. We are prepared to work with Kenya in order for it to become a regional leader. We are ready to assist you in building a mining sector that is transparent, attracts legitimate business, respects the communities and secures global supply chains. U.S. U.S. U.S. International Development Finance Corporation?supports a pipeline African rare earth project as Washington tries to reduce its dependence on the top producer China. China dominates global supply chains and has tightened their export controls in recent years. Garcia stated that "if we are serious about rare Earths minerals, energy, and a stronger America we do it together, not alone." William Ruto, Kenya's president, welcomed the U.S. assistance and said that local processing of minerals would help his government to create jobs. Ruto said at the same meeting that "in critical minerals we are accelerating responsible exploration and the development of rare earth elements, titanium graphite, Lithium, Niobium, and other strategic resources". In July, Critical Metals Corp. and RareX Australia announced that they were shortlisted for the rights to Mrima hill. Harry Kimtai said that the Kenyan government had not released a shortlist, but six companies were on it, with two from the United States, he added. U.S. Official says he rejects the extractive model Chris Kulukundis said that the U.S. and Kenya have reached an agreement on how to develop the mining sector. The Mrima?Hill procurement process is?moving in a transparent way. He said that two U.S. consortiums were being considered for the tender process. If selected, they would be able to complete the project the right way. Ruto said in June that Kenyan and U.S. officials were nearing the completion of a crucial minerals deal. On Wednesday, neither side gave an update. Garcia stated that the United States favored a mining model which includes local processing in producing countries and value addition. He said that some of his competitors were "efficient" at only one thing, which was to pull minerals from the ground and whisk them offshore. They then captured all the value added far from the land from where the minerals came from. China has denied the accusations made by some governments and advocacy organizations about its export of raw minerals to be processed elsewhere.
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Portugal purchases power and gas company REN in order to protect strategic assets and influence investments
Portugal's Government said Wednesday that it?bought a share in the power and /gas grid operator REN?to safeguard its strategic assets amidst growing geopolitical uncertainties and?gain a greater influence over?key investment. Last month, the state agreed to purchase 13.7% of REN. This is a return to the company after 12 years when it left during Portugal's bailout. During this time, China's State Grid acquired a 25% stake, becoming its?largest investor. The Environment Minister Maria da Graca Carvalho stated that Portugal has maintained a "good 'dialogue and cooperatio" with the Chinese company. However, she said the decision was based on considerations such as sovereignty, national interest, security, and geostrategic. She told a committee of parliament that "whether it's this state-owned firm?or another one from another country, the constant geopolitical changes?we've seen in recent months cannot be ignored." She stated that in light of the growing geopolitical uncertainties, it is important to control REN’s strategic assets - the electricity and natural gas transmission networks, and the gas storage infrastructure - especially when ownership is outside the European Union. She said: "We have European and national laws that allow us to act, particularly in matters of security and sovereignty, as a preventative measure?against the?highly unpredictable geopolitical climate today." She added that the stake would increase the state's "influence 'from within'" investments aimed to expand REN's?grid of electricity, and speed up connections for new wind and solar projects. This, she said, would 'help lower electricity costs and boost 'the economy's competition. She said, "We have a long list?of major investments that are dependent on the availability and reliability of the grid for electricity in Portugal."
The Russian billionaires whose chemical factories fuel Russia's war machine
Chemicals factories founded or owned by a few of Russia's wealthiest men are supplying components to plants that manufacture explosives utilized by Moscow's military throughout the war in Ukraine, an analysis of train and financial data shows.
Reuters determined five chemical companies, in which 5 Western-sanctioned billionaires hold stakes, that offered more than 75% of the key chemicals delivered by rail to some of Russia's biggest explosives factories from the start of the war up until September this year, according to the railway information.
The news agency's analysis shows for the very first time how heavily factories forming part of Russia's war device rely on these men and their business. The billionaires consist of Roman Abramovich, former owner of Chelsea Football Club, and Vagit Alekperov, who was ranked by Forbes in April as Russia's richest male with a fortune estimated at $28.6 billion.
Abramovich and Alekperov did not react to requests for remark sent via their business or attorneys. London-listed Evraz, in which Ambramovich holds a 28% stake, stated it provided the chemicals for civilian use only. Lukoil, a refiner in which Alekperov retains a shareholding, stated it does not manufacture dynamites or any related elements.
Anna Nagurney, a University of Massachusetts professor who carefully studies supply chain networks related to the Ukraine-Russia war and examined Reuters' findings, stated the five companies were aiding Moscow not only by offering essential chemical ingredients for munitions however also by earning much-needed hard cash from exports of civilian products, including fertilizers.
These chemical business might be running as civilian ones, but they are sustaining the war effort, Nagurney said.
To determine from where Russia's main munitions factories got their supplies, Reuters analysed the motion of more than 600,000 rail deliveries that brought the chemicals needed to make explosives from the intrusion of Ukraine in February 2022 through September 2024.
The railway information from two industrial databases in Russia was supplied to Reuters by the Open Source Centre, a British-based NGO devoted to collecting publicly-available intelligence and keeping track of possible sanctions infractions. It detailed the type of freight in every train wagon, the weight, origin and location, and the names of the company that sent the goods and the business that got them.
Reuters cross-checked the data from the two databases to confirm its accuracy. Nevertheless, the news company was unable to validate whether the information included every rail shipment to the dynamites factories, or the extent to which the plants got deliveries by road.
The information showed that the billionaires' companies provided essential active ingredients to 5 explosive and gunpowder factories in Russia that are subject to Western sanctions. The plants are subsidiaries of the giant Russian state arms manufacturer and car manufacturer Rostec.
Utilizing leaked tax billings covering parts of 2023, Reuters was likewise able to confirm that four of the chemicals firms were suppliers to 4 of the explosives producers.
Neither the Kremlin, the defence ministry, nor Rostec responded to Reuters' questions about civilian companies' role in providing Russia's munitions industry.
Before the war, all the explosives plants, as part of efforts to diversify, likewise utilized to make dynamites or gunpowder for civilian use. Reuters could not determine whether such civilian sales continue and whether the chemicals supplied might be earmarked for civilian usage.
Thomas Klapotke, a teacher of energetics at the University of Munich, who helped Reuters analyse the data, said that, while all the raw materials had numerous possible usages, the combination of wagon-loads of particular chemicals needed for explosives making reaching particular plants provided red. flags.
The analysis provides fresh proof that the West's. strategy of imposing sanctions on Russia as punishment for its. invasion of Ukraine has failed to suppress its military production,. according to numerous professionals talked to .
While the billionaires themselves are all under Western. sanctions, the chemical companies included have mainly escaped. major financial penalties or restrictions on their import of critical. products from the USA or the European Union.
The majority of the output of these chemical plants are civilian. items like fertilizer that are crucial to farming. Long-standing Western policies exempt food from sanctions to. prevent starvation and diplomatic blowback from developing countries.
Peter Harrell, a previous senior White Home authorities who. worked on Russia sanctions during the war's very first year and is. now a scholar at the Carnegie Endowment for International Peace,. said possibly it's time to review those 2022 choices now that. nations that when relied on Ukraine and Russia for wheat and. fertilizer have had time to find alternative sources.
Potentially, the calculus would weigh towards imposing. sanctions on these companies today, Harrell said, discussing. Reuters' findings.
Nevertheless, Manish N. Raizada, an agriculture professor at the. University of Guelph in Canada, warned that imposing sanctions. on Russian chemical business might put numerous millions of. small-scale farmers at risk, in return for a minor economic. effect on Russia.
Spokespersons for the U.S. Treasury Department, which. coordinates Washington's sanctions, and the United Nations. Advancement Program declined to talk about Reuters findings.
A European Commission representative, in response to concerns. about the chemicals companies, said: We are actively exploring. the possibilities for extra procedures to step up pressure. and close loopholes in a way that would prevent unfavorable. implications for food security.
The spokesperson worried that any action would only come. after cautious analysis of the efficiency of any procedures and. their impact on European business. Nevertheless, he noted that EU. sanctions would currently use to the business, even if they. were not particularly designated, if they were controlled or. owned by a sanctioned person.
ARTILLERY WAR. The war in Ukraine has become an artillery duel where a scarcity. of high explosives offered to NATO and Ukraine has enabled. Russian forces to get swathes of territory this year, according. to numerous Ukraine commanders interviewed .
Moscow is investing heavily in military production and. looking for to replenish its munitions stockpiles. In 2024, Russia. produced about 2.4 million weapons rounds and imported 3. million from North Korea, according to a Ukraine security. official. The North Korean embassy in London didn't return calls. from Reuters looking for remark.
The 5 munitions plants supplied by the billionaires'. companies include the huge Sverdlov center in Dzerzhinsk. The plant is the only considerable maker in Russia of the plastic. explosives HMX and RDX used in weapons and rockets, according. to a Ukrainian intelligence authorities.
Two factories run by Eurochem - established by Russian. billionaire Andrey Melnichenko - supply chemicals to Sverdlov,. according to the train information.
Eurochem is one of the world's biggest producers of. mineral fertilizers. Its Nevinnomysskiy Nitrogen plant in. southwest Russia has actually sent out at least 38,000 metric lots of acetic. acid to Sverdlov during the Ukraine war, according to a Reuters. analysis of the train data.
A second Eurochem facility, Novomoskovskiy Nitrogen sent. almost 5,000 metric lots of nitric acid to Sverdlov in the same. duration, the train data revealed.
Both acetic acid and nitric acid are used to make HMX and. RDX.
According to Reuters estimations, based on clinical. literature and evaluated by an explosives professional, 5,000 tons of. nitric acid could be used to make 3,000 lots of RDX, enough to. fill 500,000 large-calibre artillery shells.
The tax invoices reviewed verified that Eurochem. was a provider to Sverdlov last year.
In action to comprehensive questions, Eurochem stated Reuters'. reporting consisted of numerous product accurate errors. Specifically, EuroChem is not part of the defence sector of the. Russian economy and none of our items are developed for. military purposes, checked out a declaration from the business, which is. headquartered in Switzerland. Eurochem stated that any suggestion. Melnichenko controlled the business was false.
Melnichenko did not react to concerns. The billionaire,. stated by Forbes to be worth $17.5 billion, positioned his controlling. stake in Eurochem into a trust that benefits his spouse, as. Reuters has reported, after the imposition of sanctions on him. by the EU and Nato following the intrusion of Ukraine.
The declaration said that while 97% of its output is. fertiliser, Eurochem supplies other industrial items,. including these chemicals, to a wide variety of clients in Russia. and abroad. The business didn't answer Reuters' questions about. the chemical deliveries to Sverdlov. Questions sent out to the e-mail. address on Sverdlov's website went unanswered.
TAX DATA
Another fertilizer giant, Uralchem, founded by approved. billionaire Dmitry Mazepin, supplied Sverdlov more than 27,000. metric tons of ammonium nitrate, the train information revealed. Ammonium nitrate is utilized to make HMX and RDX, and is likewise blended. with TNT to produce an explosive called Amatol. Uralchem likewise. supplied 6,000 metric lots of nitric acid from its nitrogen. fertiliser plant in Berezniki to Sverdlov, the information revealed.
Two other state-owned munitions plants, the Tambov Gunpowder. Plant and Kazan Gunpowder Plant, got shipments of acids. from Uralchem, the rail information revealed.
The dripped Russian tax billings, evaluated , likewise. revealed that Uralchem supplied the Sverdlov, Tambov and Kazan. factories along with the state-owned Perm Powder plant last. year.
Asked in information about the shipments, Uralchem said the. info was inaccurate. It did not provide more information. or description.
Mazepin, who reduced his ownership of the company from 100%. to 48% simply after the invasion of Ukraine, couldn't be reached. for comment. The Tambov, Perm and Kazan plants didn't reply to. concerns sent out to email addresses noted on their sites or on. corporate filings.
A steel plant in Siberia owned by London-listed Evraz. provided 5,000 metric tons of toluene-- an ingredient for TNT -. to the Biysk Oleum Plant, according to the rail information. Evraz was. sanctioned in 2022 by the British government which stated it. provided steel to the Russian armed force.
In a statement, Evraz said it just provided toluene for. civilian usage only. The Biysk Oleum plant, a system of Sverdlov,. didn't react to requests for remark.
In April 2024, the federal government of Altai region, which. includes the city of Biysk, noted the plant amongst manufacturers. that substantially increased their 2023 production in. fulfilment of state defence procurement agreements.
Reuters determined 2 other billionaire-linked companies. providing chemicals to munitions factories. The Sredneuralsk. Copper Smelting Plant (SUMZ) in the Ural mountains, founded by. metals mogul Iskander Makhmudov, provides oleum - likewise known. as fuming sulphuric acid - utilized in the Tambov, Kazan, and Perm. powder plants.
The Lukoil refinery in Perm provided 6,500 metric lots of. toluene to the Perm powder plant, Kazan, and Biysk. Lukoil is. part-owned by billionaire Alekperov, the business's previous. president. Like others, he divested many shares in 2022 however. kept an 8.55% stake.
The tax invoices examined revealed that the Lukoil. plant was a supplier to the Perm powder plant in 2015. They. also file shipments from SUMZ to the Kazan and Perm plants.
In a declaration, Lukoil stated its Perm refinery does not. manufacture explosives or any associated elements which. questions from Reuters about deliveries from there included. absurd speculations.
SUMZ did not react to in-depth questions. Its parent. company, UMMC, which is under sanctions by the United States and Britain,. did not react to an ask for comment. Makhmudov, who. divested his managing stake in 2022, according to Forbes,. likewise could not be grabbed comment.
(source: Reuters)