Newsroom
A recent investigation by Belarusian journalists has uncovered that a company based in Cyprus is profiting from inflated contracts related to the export of potash, a key ingredient in fertilizer, from Belarus. These contracts were set up after the European Union imposed sanctions on Belarus due to its support for Russia’s invasion of Ukraine.
In March 2022, the EU banned the import and transit of Belarusian potash, which forced Belarus' state-owned potash producer, Belaruskali, to find new ways to export its product. Instead of using the Lithuanian port of Klaipėda, as they did before the sanctions, they now ship through the Russian port of St. Petersburg.
The investigation found that in 2023, Belaruskali hired a Cypriot company called Dimicandum Invest Holding to help move the potash from trains to ships at the Russian port. The deal was worth $68 million for handling 3.4 million tons of potash, which is about $20 per ton. However, the usual cost for this service is around $11 per ton, suggesting that the contracts were marked up significantly.
The investigation suggests that this arrangement might have been a way to funnel money to people connected to Belarusian President Alexander Lukashenko. The person behind the Cypriot company, Andrei Svirydau, was once a top official in Belarus, and although he admitted to working for the company, he denied signing the contracts with Belaruskali.
This situation has raised concerns that the Cypriot company may have violated EU sanctions by helping Belarus move its potash through Russia. The European Commission has said it will look into the matter and will work with Cypriot authorities if necessary. Cypriot law enforcement has already passed the information on to the appropriate agency for further investigation.
The findings highlight the challenges in enforcing international sanctions and suggest that some companies might be finding ways to profit despite the restrictions.
