European Union (EU) ambassadors on Dec. 15 agreed on a compromise ninth sanctions package on Russia.
Under the deal, individual EU Member States will be allowed to unfreeze the money of six Russian fertilizer and chemicals magnates if it is strictly needed to fund shipments of food and fertilizers, especially to Africa.
The list includes former EuroChem Group AG main beneficiary Andrey Melnichenko and his wife; Andrey G. Guryev, founder of the PhosAgro Group, and whose family holds a controlling stake in the group; Uralchem’s JSC former CEO, Dmitry Mazepin and former controlling stakeholder in LLC Uralchem Fundamental Chemical Co.; and farming billionaire Vadim Moshkovich, among others, according to a Euractiv report.
The three fertilizer company heads were among a number of wealthy Russian individuals who were included on the EU’s expanded list of sanctioned Russian individuals on March 9 this year (GM March 11, p. 1).
The derogations for food security and fertilizers had been included after pressure from France, Germany, the Netherlands, Belgium, Spain, and Portugal, according to the report.
They had argued that while the existing sanctions do not target fertilizer and grain, the sanctions regime makes it too difficult to supply fertilizers to Africa, particularly because of the fact the companies’ ultimate owners are sanctioned – increasing the risk of famine.
However, the transactions can also be rejected for national security reasons, and EU Member States will need to consult the European Commission before they can go ahead.