**Spanish Explosives Firm Linked to Russian Arms Supply Chain, Report Says**
A Spanish company, Maxam, one of the world’s largest explosives manufacturers, has been linked to Russia’s arms supply chain despite international sanctions. According to a report by The Insider, a Russian investigative publication, Maxam continued producing and exporting explosive materials in Russia after the full-scale invasion of Ukraine began.
The EU, US, and G7 countries imposed sanctions on Russia in response to its 2014 invasion of Ukraine and its full-scale assault in 2022. However, many international companies ceased operations in Russia, but others have continued, indirectly supporting the Russian invasion through ongoing business ties.
**Maxam’s Ongoing Business Ties with Russia**
The Insider reported that Maxam had four entities operating in Russia: Maxam Russia, VSI JSC, Eastern Mining Services LLC in Murmansk, and UII-Sibir LLC in Krasnoyarsk Krai. These firms produced and certified new batches of emulsion explosives such as Riomeks, Rioflex, Rioxam, Emunex, and VET during 2022 and 2023.
Although classified for civilian use, these materials support industrial chains crucial to military production. The Insider also reported that Maxam’s Russian operations earned over 11.46 billion rubles ($144 million) in three years and took a 320 million ruble loan from the sanctioned Sberbank in 2023.
**Client Links to Russia’s Defense-Related Sectors**
The Insider found that VSI explosives were used by Gorevsky GOK, one of the world’s top lead-zinc ore producers supplying military-use materials. Maxam subsidiaries also worked with EuroChem, tied to defense factories, and Polyus Krasnoyarsk, sanctioned by the US in May 2023.
Maxam reportedly imported detonators into Russia through third countries even after 2022, contradicting official Spanish claims. In early 2024, VSI received $1.414 million in detonators from India’s Ideal Detonators.
**Military Connections**
Although most of Maxam’s clients were civilian, VSI had contracts with Russia’s defense sector. In August 2017, it supplied eight types of detonators to military unit 44239, part of the FSB’s Center for Special Equipment — the successor to a KGB weapons design unit.
In 2018, VSI also signed a state contract with Saransk Mechanical Plant, part of Rostec, to deliver non-electric initiation systems used in military applications.
**Uzbekistan Plant’s Role in Supply Chain**
Maxam holds a 49% stake in Maxam-Chirchik in Uzbekistan, producing ammonium nitrate and other explosive precursors. Annual output includes 450,000 tons of ammonium nitrate, a critical ingredient for both industrial and military explosives.
Large buyers of this output include Russia and Iran. UN Comtrade data shows a surge in ammonium nitrate exports from Uzbekistan to countries bordering or friendly to Russia.
**Maxam May Have Violated Sanctions in Four Different Ways**
The Insider identified four potential sanctions violations by Maxam: cooperation with sanctioned Russian banks, product supply to sanctioned companies, explosive production in Russia, and continued detonator imports. While these acts don’t directly breach sanctions when performed by Russian firms, Maxam fully owned and controlled its Russian entities until February 2024.
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