Russian oligarch Andrei Melnitschenko is known worldwide as the owner of the largest private three-masted ship ever built. What is less known is that he founded one of the largest fertilizer companies in the world, headquartered in Zug. And this manufacturer has not yet been sanctioned.
Fertilizer company Eurochem is considered so important to global food that it is exempt from sanctions against Russia worldwide.
“Nevertheless, the company is treated almost like a sanctioned company,” defends the Swiss CEO of Eurochem, Samir Brikho, in an interview with SRF.
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The reason: all Swiss banks have closed Eurochem’s accounts due to the risk of sanctions. The trade was therefore moved to Dubai. During an SRF visit to Zug, the headquarters offices were deserted. Only the CEO and two assistants were at the company’s headquarters. But Samir Brikho nevertheless assures him: “The group is managed from Switzerland.”
Due to “harassment”, production fell by 20% at the start of the war, he explains. Eurochem had to close its plant in Lithuania due to political pressure.
Victim or profiteer?
So, is the Eurochem company, even without official sanctions, a victim of the war? For Robert Bachmann, raw materials analyst at the NGO PublicEye, this is absolutely not the case. When the conflict broke out, fertilizer prices literally exploded. Robert Bachmann speculates that ultimately Eurochem was able to post record profits despite reduced production.
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Questioned about this, Samir Brikho denies it. “We didn’t make any additional profit because we lost volume.” The CEO and chairman of the board also promised SRF that journalists would be able to see the company’s figures. But while these same journalists wanted to enforce this promise, Eurochem stubbornly refused to keep it.
Sanctions avoided
Eurochem is one of the largest fertilizer producers in the world. The company was founded by Russian oligarch Andrei Melnitschenko, a businessman suspected of being close to the Kremlin. When the war broke out, he withdrew and designated his wife as beneficial owner.
When it was in turn sanctioned by the West, a “ring fencing” was put in place. This is to legally guarantee that no money is paid by Eurochem to sanctioned people. This is also why the company has not been sanctioned in Switzerland until today.
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This lack of sanctions arouses criticism in the political world. Zug’s Green national councilor Manuela Weichelt denounces the Swiss approach: “I’m afraid that it will have a boomerang effect, that it will explode in our faces at some point. I don’t understand why Zug and Switzerland are taking this risk. ” Especially since Eurochem is practically no longer present in Switzerland and the Swiss financial center avoids Eurochem precisely because of the risk of sanctions.
Franz Grüter (UDC/LU) has a different opinion. He fundamentally criticizes the sanctions. Andrei Melnitschenko can’t even get the opinion of lawyers in Switzerland: “I think we have to ask ourselves whether what is happening now is still constitutional.”
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The Federal Council declared last year, in response to a parliamentary question, that ring fencing as a tailor-made solution was only valid for Eurochem. At the beginning of this year, SECO verified the effectiveness for the first time through an independent audit, as Eurochem reported at the request of SRF.
However, at the request of SRF, SECO does not provide any information on the concrete results of the audit.
Sascha Buchbinder (SRF), broadcast “Rundschau” from June 5, 2024
Adaptation: Julien Furrer (RTS)
