The European Union continues to import Russian ammonia legally despite widespread sanctions, utilizing a specific "EU special quota" that permits these transactions. Investigations by SWR reveal that the companies involved in this trade maintain connections to oligarchs close to Vladimir Putin and the Russian explosives industry. On October 5, the tanker Eco Sorcerer arrived at the Antwerp chemical port, docking at a terminal shared by BASF and EuroChem. The vessel carried more than 20,000 tons of Russian ammonia, having been loaded ten days prior at the Ust Luga port in Russia. Satellite data analyzed by SWR reporters over several weeks confirms that these transport operations are continuous.
Ammonia is a critical raw material for fertilizer production, manufactured from natural gas. For Russia, this sector represents a lucrative business opportunity as direct natural gas exports face increasing restrictions. Following a 2014 strategy paper from the Russian Ministry of Energy, the country has invested billions to expand ammonia production and related infrastructure, aiming for a massive increase by 2030. Benjamin Hilgenstock, a sanctions expert at the Kyiv School of Economics, explains that Russia is systematically adapting to sanctions by exporting energy resources indirectly to generate revenue even when direct exports are limited.
Although the European Parliament sought to halt this trade in 2025, pro-Russian lawmakers negotiated compromises, resulting in an approved special quota of 700,000 tons per year. Isabel Wiseler-Lima, a Luxembourgish EU Member of the European Parliament, criticized these agreements as unsatisfactory for those supporting Ukraine, stating that no money should flow to Russia. The imports are primarily conducted by EuroChem, a Russian conglomerate with subsidiaries in Antwerp and Germany. The company's founder, Andrey Melnichenko, is a close ally of Putin and was sanctioned by the EU shortly after the 2022 invasion for supporting the war and providing crucial revenue to Russia.
While Melnichenko himself is sanctioned, EuroChem remains unsanctioned because he transferred his multi-billion euro shares to his wife in 2022. However, Russian media continue to portray him as the company's responsible figure, particularly regarding ammonia production expansions at the Kingisepp plant near St. Petersburg for the EU market. Hilgenstock argues that current sanctions have loopholes, noting that companies playing key roles in Russia's arms production should be fully sanctioned and banned from trading with the EU. Additionally, SWR information suggests Melnichenko still resides temporarily in Switzerland, where he owns a luxury chalet in St. Moritz, despite this potentially violating sanction regulations.
Further investigations reveal that EuroChem supplies not only the EU but also Russian military firms with nitric acid for explosives production. Industry insiders report that ammonia and nitrate are produced within the same facilities. Financial reports indicate EuroChem provides these materials to Russian ammunition manufacturers. A spring 2026 report by the Estonian intelligence agency highlights EuroChem's pivotal role, stating that any significant disruption to its production would likely cause severe interruptions in Russia's entire ammunition supply chain. Wiseler-Lima and Hilgenstock both emphasize the need for the EU to decouple from the Russian war economy immediately, arguing that non-essential trade must end to weaken Russia's position and reduce European dependencies.
Sources: Tagesschau.