United Nations Secretary General Antonio Manuel de Oliveira Guterres has requested permission from Latvia to take over sanctioned mineral fertilizers owned by a firm of a Russian billionaire, as reported by TV3 programme Nekā personīga.
The goods in question are locked down at the Freeport of Riga. The programme reports they have a letter from URALHIM owner, Russian billionaire Dmitry Mazepin, who is a close acquaintance of Russian President Vladimir Putin.
In the letter sent to Latvia’s Ministry of Foreign Affairs, he asks the mineral fertilizer shipment – approximately 200 000 tonnes – to be released and allowed to be exported to Africa. A similar request was sent to Latvia’s President Egils Levits by UN Secretary General Antonio Manuel de Oliveira Guterres in October.
Following consultations with the European Commission, it was decided that Latvia will allow the UN to take the mineral fertilizer from the Freeport of Riga, but under one condition: Mazepin’s firm would not receive any payment. Instead the mineral fertilizer shipment would be given to the UN as a donation. This way letting the shipment leave the port would not be considered a violation of sanctions.
The president told the programme that in this particular matter cooperation is possible only with the UN: «Latvia must follow all sanctions, and Latvia stands in favour of tighter sanctions». Cooperation between businesses under international sanctions or individuals is impossible, he said.
Nekā personīga reminds that mineral fertilizers are explosive both politically and literally. The programme reports that their exports to third world countries was discussed in Istanbul in June. This is also where the UN, Russia, Ukraine and Turkey discussed exports of grains from Ukraine.
In July the UN representative in Latvia commenced informal consultations in regards to the transportation of Mazepin’s owned cargo to African countries. Latvia’s Minister of Foreign Affairs Edgars Rinkēvičs told TV3 that both the company and Russia’s side have caused quite a storm in the UN. Similar request to release Russian fertilizer shipments were sent to the Belgian, Dutch and Estonian government.
The minister explains: «One of the arguments as to why the European Union and G7 member states are doing all they can to provide southern countries with grains and mineral fertilizers is Russia’s propaganda campaign that blames western sanctions for the situation – the surge of prices and shortage of both grains and mineral fertilizers.»
Rinkēvičs could not say how large an influence Mazepin’s company or Russia have had for such a response from the UN.
«I can only say that this is an attempt by Russia to capitalise both on the diplomatic front with the south and propaganda. But we have always made it clear that […] Russia’s invasion and war in Ukraine are the cause for this situation,» the minister told Nekā personīgi.
In one of the letters Mazepins’ representatives asked Latvia to follow UN’s directive and «immediately ensure accessibility to mineral fertilizers for countries that are at risk of food shortage the most». URALHIM also complained in the letter that Mazepin’s firm in Latvia Uralkali Trading – which sells mineral fertilizers to his other company Riga Fertilizer Terminal (RFT) – owes half a million euros for freight storage. The company asked permission to access its account in Rietumu Bank in order to pay the debt.
According to the decision of the government, the mineral fertilizer shipment owned by Mazepin’s companies will be taken over and made into a donation. After that the shipment will be delivered to a country in Africa or Latin America, but only after coordinating efforts with Latvia. No specific country is picked as of yet because first the quality of mineral fertilizers have to be inspected by representatives of the World Food effort. The UN is committed to taking charge of all related tasks – transportation and processing.
Nekā personīgi explains: nine years ago – on the 18th of December 2013 – mineral fertilizer handling plant was festively opened, with Russian national anthem playing no less, at the Freeport of Riga. This fertilizer handling plant is owned by Riga Fertilizer Terminal. Many Latvian political heavyweights were present at the opening ceremony, including Aivars Lembergs and Ainārs Šlesers. At the time Šlesers was trying to get back into politics with his party United for Latvia. At this ceremony Šlesers was accompanied by an average-height man who was largely ignored by the media.
This man was Dmitry Mazepin – the owner of Riga Fertilizer Terminal. He is also in charge of the Russian mineral fertilizer giant URALHIM. Nine years ago Šlesers hid his ties with businesses based at the Freeport of Riga and Mazepin himself. Now it is public information that people with ties to Šlesers and Andris Šķēle manage Riga Commercial Port LLC, which is a minority shareholder in RFT, reminds Nekā personīgi.
On the 24th of February – shortly after the start of Russia’s invasion of Ukraine – Mazepin and other businessmen with ties to Putin discussed ways to battle western sanctions. Mazepin’s business at the Freeport of Riga is «on hold». The same applies to URALHIM’s owned Ventamonjaks in Ventspils. Halcyon Capital JSC is a minority shareholder there. This company’s beneficial owner is Lembergs’ son-in-law Jānis Austriņš.
A week into the Russian invasion of Ukraine, Singapore-based ship Asian Majesty entered the Freeport of Riga from St. Petersburg. It entered the port already partially filled, but RFT loaded a shipment of potassium chloride owned by Mauritius-based firm owned by Mazepin.
She ship left port but was not allowed to leave Latvia’s waters because of sanctions.
Since March the shit loaded with potentially explosive cargo remains anchored in the Gulf of Riga. Freeport of Riga CEO Ansis Zeltiņš confirms having received a request to permit the ship enter port if the sea freezes over. A similar request was received by the Freeport of Ventspils.
«If we look at the ship, we will see it is not in danger, and the cargo is not in danger either. It is the responsibility of the crew of the ship. If something were to happen, the captain would be the first to raise a ruckus,» Zeltiņš told the programme. According to the State Environment Service, recently RFT had a shipment of 89 thousand tonnes of mineral fertilizers. Latvian institutions didn’t know what to do with it. Environmentalists are alarmed that long-term storage of such shipments risks increasing the risk of explosion.
Putin, referencing the confusion voiced to him by «multiple African leaders», said the blocking of mineral fertilizers is unacceptable, especially in the context of the poorest countries of the world. Russia’s president said as much during a recent his work meeting with Mazepin. Russian propaganda television channel showed a video documentary. In it, Mazepin can be seen «complaining to his master». He said he is prepared to donate his mineral fertilizer shipments to Russia’s poor friends in Africa and Latin America, and the evil western countries, Latvia included, prevent this from happening.
Mazepin claims that a total of 262 000 tonnes of mineral fertilizers owned by URALHIM, as well as 52 000 tonnes owned by ACRON and 100 000 tonnes owned by Swiss-based EuroChem, are currently blocked at ports of Latvia, Estonia, Belgium and Holland.
Latvia’s Minister of Foreign Affairs commented on Putin’s and Mazepin’s statements the following way: «Let’s not be naive. There are far-reaching considerations, as the discussion regarding exports of Ukrainian grains and mineral fertilizers will continue. There will be attempts to restore trade of mineral fertilizers and their transit. These are not under sanctions, companies and individual are. And this is a complicated international game. Players are competing for the hears and minds of the south. This is no simple topic. I have met with many ministers from Africa and Latic America during the UN General Assembly. The further away from Ukraine, the more we have to explain and fight for these countries’ approval and votes.»