Economy
March 21, 2024
Border
Less than
2
min read

Russian Nickel and Fertiliser Shipments Continue to Finland Despite Border Tensions

Despite sanctions and the war in Ukraine, Finland's role as a channel for essential Russian materials exposes the EU's dependence on Russia,
Russian Nickel and Fertiliser Shipments Continue to Finland Despite Border Tensions
Etienne Girade - Unsplash

Despite the ongoing conflict in Ukraine and Finland's closure of Russian border checkpoints, shipments of Russian nickel and fertilisers continue to flow into the country. While these materials aren't explicitly targeted by current EU sanctions, their continued import raises complex questions about supply chains, ethics, and the bloc's reliance on Russian resources.

Nickel: A Critical Resource for the EU

The Nornickel Harjavalta plant, located on Finland's west coast, is the European Union's only large-scale nickel smelter. Nickel is a vital component in stainless steel, batteries, and other industrial applications, making it crucial for the region's economy and green energy transition. The plant is owned by Russian mining giant Nornickel, controlled by Vladimir Potanin, an oligarch with close ties to Vladimir Putin. While Potanin faces sanctions from the US, UK, and Canada, the EU has yet to impose similar measures.

Fertilisers: Feeding European Agriculture

Russian fertilizers enter Finland through the Port of Kotka, where Yle's investigation has uncovered the involvement of Russian-owned companies in the transport and distribution of these materials. Fertilisers are essential for agricultural production, and their continued availability is seen as vital for global food security. However, reliance on Russian sources raises concerns about funding the ongoing war in Ukraine.

The Ethical Dilemma

The continued trade in Russian nickel and fertilisers creates a profound ethical dilemma. While these resources are deemed crucial for European industries and agriculture, their purchase indirectly contributes to funding the ongoing war in Ukraine. This highlights the difficult balance countries and companies must strike between maintaining critical supply chains and the moral imperative to isolate Russia economically.

Questions of Compliance and Exemptions

Investor concerns have also surfaced, with Ilmarinen, a major stakeholder in logistics firm Nurminen Logistics (a transport company involved in the shipments), expressing a commitment to ensuring compliance with sanctions. Nurminen Logistics has continued to transport nickel and fertilisers even during ongoing political strikes, citing a "protection principle." However, no Finnish government agency has publicly confirmed issuing such exemptions, raising questions about the exact legal basis for these shipments.

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