The Russian producer supplies raw materials to Estonia’s NPM Silmet. Tallinn cited risks to European industry and said the company would seek alternative suppliers.
The Solikamsk Magnesium Plant (SMZ) was left out of the draft 22nd European Union sanctions package against Russia after a request from Estonia. ERR reported that the plant’s general director, Ruslan Dimukhamedov, was also removed from the draft. SMZ supplies raw materials to Estonia’s NPM Silmet, which is owned by Canada’s NEO Performance Materials.
Estonian Prime Minister Kristen Michal said the decision ran counter to the country’s foreign policy but was driven by European industry’s dependence on the supply. He said NPM Silmet and its parent company, NEO, should find alternative sources. Foreign Ministry deputy secretary-general Kerli Veski said sanctions could harm EU industry. Estonia said it would return to the question of sanctions on the supplier next year.
EU member states’ ambassadors agreed on the draft on October 7. RBC, citing Reuters, reported that the package is expected to list 1,646 individuals and companies, including entities linked to Russia’s military-industrial complex. Formal approval is expected at an EU foreign ministers’ meeting on October 12.
The EU adopted its previous, 21st sanctions package on July 23. It covered the financial, energy and defence sectors. Restrictions applied to 94 banks and major financial institutions, while transactions with 33 other organisations were prohibited. The package also listed 41 tankers and set a $44.10-per-barrel cap on Russian oil through July 15, 2027.
Moscow considers Western sanctions illegal and has called for them to be lifted. After the 21st package was adopted, Russia’s mission to the EU said the new measures would worsen the bloc’s own socioeconomic problems. Russian diplomats promised a response.