Russian state-owned company channels hundreds of millions in uranium profits through the Netherlands

This article was last updated on August 19, 2024

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Russian state-owned company channels hundreds of millions in uranium profits through the Netherlands

Russia’s state-owned nuclear company Rosatom uses a Dutch subsidiary to move hundreds of millions in profits, including during the war with Ukraine. This is evident from the recently published annual report from the subsidiary company in Amsterdam.

Part of those millions end up in Russia’s treasury through the state-owned company. Russia thus also benefits from European dependence on the Russian uranium sector during the war with Ukraine. Because of this dependence, Western governments do not yet dare to impose sanctions against Rosatom.

Rosatom is a major producer of uranium and nuclear energy. In addition, the state-owned company plays a role in the war by managing the captured nuclear power plant in Zaporizhia. Through its Dutch subsidiary Uranium One Cooperative, the Russian state-owned company is active in extracting nuclear raw materials in Kazakhstan and Tanzania.

Russian treasury

From those countries, the proceeds flow to the Netherlands before being forwarded to Russia. In 2022, the Dutch company made a profit of 240.6 million dollars (222 million euros). Tens of millions of these were transferred to the parent company in Russia.

Uranium trading and other activities also generate a significant amount of money for the Russian treasury every year. According to the parent company’s annual report, Rosatom paid more than 291 billion rubles (3.1 billion euros) in taxes in 2022.

Despite this flow of money to the state treasury, Rosatom remains exempt from sanctions from Europe. The nuclear sector in the West can hardly do without the company, which with a market share of 35 percent is the largest supplier of enriched uranium in the world.

Recycling

“Russia is a major player in the nuclear sector,” a spokesperson for Urenco from Almelo also said. That company is active in the enrichment of uranium. “We see a movement of Western companies that no longer want to do business with Russia, after the Russian invasion of Ukraine. This, for example, has increased the demand for uranium enrichment at Urenco.”

But it is not yet possible to completely replace the Russian part of the chain. Especially when it comes to recycling used uranium, the services of the Russians are currently the only option. Since 2022, work has been underway in the United Kingdom to build a factory that can do this.

Another point of dependency is the old Soviet power stations in the Czech Republic, Slovakia, Bulgaria, Hungary and Finland. These VVER nuclear power plants traditionally operate with Russian fuel rods. European companies are now also looking for alternatives. For example, two months ago in Bulgaria the first western bars On.

But research by the Norwegian environmental organization Bellona showed that European imports of nuclear fuel from Russia doubled last year. Slovakia and the Czech Republic in particular saw significantly more imports from Russia, possibly in anticipation of future sanctions.

Still sanctions?

The European Union has not yet imposed sanctions against Rosatom and related companies. This license ensures that Russian uranium also ends up in the Netherlands. For example at Urenco. In February granted the Nuclear Safety and Radiation Protection Authority (ANVS) has issued several more permits for the import of recycled Russian nuclear fuel destined for Almelo.

The uranium used comes from a French nuclear reactor. The French send the substance to Russia and then have the recycled material enriched again at Urenco. The company from Almelo does not do direct business with Russia.

In the United States, calls for sanctions against the Russian nuclear sector are now becoming increasingly louder. Especially after the American newspaper The Wall Street Journal published a piece last year about Rosatom’s increasingly active role as a supplier to the Russian army.

Going into both the Republican and Democratic camps now vote for to also impose sanctions on Rosatom. In addition, the US will implement one from 2028 import ban on Russian uranium.