Although the Estonian Ministry of Foreign Affairs has pressured Silmet to stop purchasing rare-earth metals from Russia, the company has not yet ceased doing so, reports ERR News.Estonian Foreign Minister Margus Tsahkna stated that the ministry has pressured the chemical and metallurgical company Silmet, urging it to stop sourcing raw materials from Russia. The minister has now pledged to set a deadline by which the company must stop using Russian rare-earth metals. Tsahkna believes Silmet should end its cooperation with Russia starting early next year.ERR asked the ministry what specific methods were used to secure a move away from Russian raw materials, why the company has not agreed to this, and whether the ministry (or the minister) bears responsibility for the fact that an Estonian company continues to cooperate with Russia while Russian aggression has been raging in Ukraine for five years.In its response, the ministry noted that the company’s reliance on Russian raw materials has long been a matter of public knowledge. According to the ministry, Estonian media reported on this issue as early as 1995. The ministry emphasized that dependence on Russian raw materials is not merely a business issue but also creates a strategic vulnerability that Moscow could exploit. Therefore, it is considered crucial to end this dependence as soon as possible. The Ministry of Foreign Affairs maintains contact with Estonian companies, including Silmet, regularly stressing the need to seek alternatives to supplies from Russia.The Ministry of Foreign Affairs explained that Silmet is a public limited company owned by an international group headquartered in Canada. Consequently, the state cannot directly influence business decisions or continuously monitor the nuances of its operations. Nor can the state verify whether the company has genuinely sought alternative raw material suppliers.At the same time, the ministry emphasized that it is working to support Silmet in finding other supply channels and has cooperated with the European Commission, which is responsible for the European Union’s common trade policy. According to the Ministry of Foreign Affairs, a significant step toward change was taken on the 9th of October, when the European Commission selected the Silmet development project as one of 46 strategic EU projects. The project aims to modernize the company’s facilities to enable the use of raw materials sourced elsewhere and to reduce European industry’s dependence on Russia. The Ministry noted that the project would allow Silmet to grow and reduce its reliance on Russian raw materials.Rare-earth metals potentially suitable for Silmet’s operations can be found in Latin America, Asia, and Africa. The company itself is best positioned to assess the suitability of raw materials for its specific needs and technological processes. The Ministry emphasized that Silmet needs to explain to the public as soon as possible how it plans to end its dependence on raw materials supplied by Russia.Increasing competition in the international market is making it more difficult to find alternative raw materials. Major industrial powers are actively competing for limited raw material supplies, thereby affecting availability and supply options. The ministry stated that Estonia aims to support Silmet’s efforts to find alternative suppliers and reduce its dependence on Russia. Achieving this goal will require investment and technological changes within the company itself, as well as cooperation at the EU level to improve the availability of alternative supply channels.Last week, at Estonia’s request, a Russian company that supplies rare-earth metals to Silmet was removed from the EU’s 22nd sanctions package.
State cannot directly control company decisions
