US and UK apply new sanctions on Russian mining and metallurgical companies

The new sanctions announced by the US on 23 February focused on the mining and metallurgy sector, particularly coal mining. Russia's largest coal producer SUEK and Mechel were added to the SDN (Specially Designated Nationals and Blocked Persons) list.

Former SUEK shareholder Andrey Melnichenko became subject to European sanctions in 2022 and was removed from the list of company shareholders. Russia's largest pipe manufacturer TMK and its subsidiaries were also placed on the sanctions list. TMK founder Dmitry Pumpyanskiy transferred his shares in the company to the management after it was blacklisted by the EU and the UK after the start of the conflict in Ukraine.

Foreign trade affected negatively

The US sanctions also include Konstantin Strukov and his company Yuzhuralzoloto, former ChTPZ owner Andrei Komarov and his assets Bystrinskaya Mining company, Fedorovo Resources and oilfield service equipment manufacturer Rimera. Also on the SDN list are the companies AEON Mining (coal assets in Vorkutaugol and Taimyr) and Geopromining (non-ferrous metal mining) associated with Roman Trotsenko.

Being on the sanctions list means the inability to use the dollar for payments and the risk of secondary sanctions for all contractors. This has a negative impact on foreign trade operations.
Sanctioned companies do not provide data on the countries from which they receive income. In its 2020 report, Mechel stated that Europe and the US accounted for 13 per cent of its revenues. According to the TMK's 2021 report, markets in Europe and America accounted for 9.5 per cent of revenue. SUEK lost exports to Europe with the implementation of Russia's coal embargo in August 2022, and China has now become its main market.

There is a Turkish company on the sanction list

The UK has also expanded sanctions against Russia and Belarus. The restrictions include UGMK, ALROSA management and NOVATEK Board members, Mechel Chairman Igor Zyuzin, Arctic LNG-2 and its President Oleg Karpushin, Samara Metallurgical Plant and Kamensk-Uralsky Metallurgical Plant, United Metallurgical Company Chairman Anatoly Sedykh, ALROSA CEO Pavel Marinychev, AGD Diamonds and Almaznuy Mir. In total, the sanctions list was updated with 50 positions, including Turkish, Chinese and Belarusian companies.