Ukraine seizes $50M in aluminium raw materials from sanctioned Russian tycoon

Ukraine has confiscated raw material worth 2.11 billion hryvnias (US$50.3 million) from Russian aluminium magnate Oleg Deripaska, reports Moscow Times. On Wednesday, January 29, 2025, the Sluzhba Bezpeky Ukrayiny (SBU) or the Security Service of Ukraine said that the incident ensued after two years of blocking their shipment. The security service has also disclosed that it seized close to 500,000 tonnes of bauxite and alumina that were stored at the Mykolaiv Alumina Plant, which Ukraine nationalised alongside other Deripaska-owned factories following Russia’s full-scale invasion. The ore was produced in Ukraine before Russia launched its invasion on February 24, 2022, mentioned the security service agency.

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In early 2023, Ukrainian law enforcement, with the Security Service of Ukraine (SBU) involvement, intercepted a plan to export bauxite and alumina from the Mykolaiv alumina plant, which is a vital facility for the Ukrainian and regional aluminium industry. The SBU established that the seized materials belonged to a company linked to Oleg Deripaska through a Europe-registered entity that formally conducted business with the Mykolaiv plant. The agency also noted that Deripaska’s factories produce components for Russia’s Iskander ballistic missiles, combat drones and radar systems.

Ukraine has accused Deripaska of crimes, including funding Russia’s war. Oleg Deripaska is the founder of Rusal, one of the world’s largest aluminium producers, and has extensive ties to the Russian metals and mining sector. Despite his reputation as a Kremlin insider, Deripaska has occasionally criticised the war in Ukraine. However, his criticisms have mainly focused on the negative economic impact on Russia rather than openly opposing the war on moral or political grounds. His relatively moderate stance sets him apart from other members of Russia’s business elite.