Switzerland has lifted sanctions and unblocked the accounts of Zug-based EuroChem Group AG after the fertilizer group’s founder and main beneficiary, Andrey Melnichenko, ceased to be a beneficiary and left the company’s Board of Directors, according to an Interfax report this week, citing Swiss newspaper Tages-Anzeiger.
Melnichenko stopped being a beneficiary and left the company’s Board after his inclusion on the European Union’s expanded sanctions list against Russia, unveiled on March 9 (GM March 11, p. 1). He previously had controlled 90% of EuroChem Group AG via Cyprus-based AIM Capital SE.
The new beneficiary of the trust to which the controlling stake in EuroChem previously held by Melnichenko has been transferred to his wife, Alexandria, according to the newspaper report, citing Switzerland’s State Secretariat for Economic Affairs (SECO), the organization responsible for monitoring sanctions against Russia.
Having received the information about the change of beneficiary, SECO concluded that there was no proof that a person subject to sanctions has control over EuroChem, according to the report.
UBS and Credit Suisse temporarily froze EuroChem’s accounts on March 16 after Andrey Melnichenko was put on Switzerland’s sanctions list, making it impossible for the fertilizer group to make due interest payments on its Eurobonds (GM April 22, p. 28) In line with the SECO charter, EuroChem’s accounts and payments have now been unfrozen.
Following the management change at EuroChem, the Belgian government on May 24 allowed EuroChem Antwerpen to restart production, and to also buy raw materials. The plant’s assets include nitric acid units, as well as NPK, ammonium nitrate, and CAN units, and a nitrophosphoric acid plant.