In its latest move to ratchet up the pressure on Moscow following Russia’s invasion of Ukraine, the European Union (E.U.) on March 9 expanded its list of sanctioned individuals to include the heads of three of the country’s biggest fertilizer companies. They are among 14 wealthy Russian individuals and some of their family members, and more than 140 members of the upper house of the Russian Parliament.
They include Andrey Melnichenko, the founder and controlling shareholder of Zug, Switzerland-based EuroChem Group AG; Uralchem JSC owner and CEO Dmitry Mazepin, who is also the Deputy Chairman of Uralkali PJSC and, via Uralchem, Uralkali’s owner; and Andrey A. Gurvey, the CEO of PhosAgro PJSC.
Gurvey on March 10 resigned his position as CEO, and PhosAgro’s Board of Directors appointed Mikhail Rybnikov in his place. Xavier Rolet is also stepping down as PhosAgro’s Chairman. Rolet, a former London Stock Exchange Group CEO, has also resigned from his PhosAgro Board membership.
Andrey A. Guryev and his father, Andrey G. Guryev, who was founder of PhosAgro and whose family holds a controlling stake in the company, have also resigned from their PhosAgro Board memberships.
Following his inclusion on the E.U. sanctions list, Andrey Melnichenko has ceased to be the beneficiary of the EuroChem Group and has exited its Board of Directors, according to an Interfax report, citing a EuroChem statement.
Melnichenko had previously controlled 90 percent of EuroChem Group AG via Cyprus-based AIM Capital SE. The remaining 10 percent interest comprises treasury shares. The statement does not specify how the company’s ownership would now be structured.
Limited Liability Company Uralchem Fundamental Chemical Co. (Uralchem Fundamentals LLC) announced late on March 10 that Dmitry Mazepin, who previously held a 100 percent stake in the company, has sold a 52 percent controlling stake from his holding. Mazepin thus now has a 48 percent stake in the company, according to the statement.
Mazepin also resigned from the position of the CEO of Uralchem JSC, which is a wholly-owned subsidiary Uralchem Fundamentals LLC. Dmitry Konyaev, who previously chaired the Board of Directors of Uralchem JSC, was appointed the new CEO of Uralchem JSC. Replacing Konyaev as the Board Chair at Uralchem JSC is Dimitry Tatyanin, who previously was its Deputy Chairman of the Board.
Uralchem Fundamentals LLC owns several of the largest chemical companies in Russia: Uralchem JSC (the parent company of Uralkali PJSC), TogliattiAzot PJSC, and GaloPolymer JSC.
Mazepin’s son, Nikita, the Formula One driver, was also included in this latest E.U. sanctions list. Nikita Mazepin’s contract was recently terminated with the Haas F1 Team, according to the E.U. Journal.
Uralkali, the title sponsor of Uralkali Haas F1 team, announced on March 9 that it had been advised by the team of their unilateral termination of the sponsorship agreement with the company due to the current geopolitical situation.
Uralkali said it views the team’s decision as “unreasonable,” and believes that sports should always be free of politics and pressure from external factors. Consequently, Uralkali said it intends to protect its interests in line with applicable legal procedures and reserves its rights to initiate judicial proceedings, claim damages, and seek repayment of the significant amounts Uralkali had paid for the 2022 Formula One season.
The E.U. this week has also moved to cut off three Belarusian banks from the SWIFT international payments system: JSC Belagroprom Bank, Bank Dabrabyt, and the Development Bank of the Republic of Belarus.