The European Union’s General Court on Wednesday upheld sanctions against oligarch Dmitry Mazepin, affirming his status as a leading businessperson in Russia and a significant owner of UralChem, one of the country’s largest mineral fertilizer manufacturers.
UralChem’s Economic Significance
Although UralChem’s revenues are smaller compared to those from Russia’s energy sector, its contributions remain substantial to Russian government reserves, the General Court emphasized. This supports the EU Council’s decision to maintain a freeze on Mazepin’s assets, including his 48% stake in UralChem, which was imposed in September 2022. The sanctions aim to increase the economic pressure on Russia in light of its war efforts in Ukraine.
UralChem Owner Can’t Shift EU Sanctions : Strategic Importance of UralChem
The EU Council justified its sanctions on Mazepin, highlighting UralChem as a strategic asset. The company claims to be the largest producer of ammonium nitrate and the second-largest producer of ammonia and nitrogen fertilizers in Russia. Mazepin attempted to overturn the decision, arguing the council’s decision was based on a “manifest error.” He pointed out that UralChem’s tax contributions to Russia’s federal budget amounted to $5.95 million, a minor sum compared to the country’s approximately $343.3 billion total budget.
Court’s Dismissal of Appeal
Mazepin also noted his sale of a 52% stake in UralChem Group’s holding company and his resignation as CEO in March 2022, arguing that the situation justifying his initial sanction had changed. However, the General Court dismissed his appeal, stating it was “unambiguously clear” that Mazepin remained a leading businessperson due to his ownership and former CEO status.
