The US has imposed sanctions on Russian mining magnate Vladislav Sviblov and several mining companies linked to him, including one that’s developing one of the world’s largest zinc mines.
The sanctions are the latest move against Russia’s metals and mining sector and come after the UK imposed sanctions on Sviblov last month. Sviblov has emerged as a major player on the Russian metals scene in recent years, buying up several mid-tier gold companies and building one of the world’s largest zinc mines at Ozernoye in Siberia.
Russia’s gold sector has been largely isolated from the West after the G-7 imposed an import ban last year. However, the Ozernoye mine had attracted the attention of traders including Trafigura Group and Open Mineral, which had been bidding for a long-term contract to buy its zinc ore, Bloomberg reported in October.
Now, US sanctions not only on Sviblov but also directly on the Ozernaya Mining Company will make it impossible for Western companies to trade with it. Bloomberg also reported in October that two Chinese companies were seeking an offtake agreement with the mine, which is located in Buryatia, a few hundred kilometres from the Chinese border.
At full capacity, the project would be one of the world’s largest zinc mines, accounting for 4% of global production, Russia’s Far East and Arctic Minister Aleksey Chekunkov said during a visit to the site last year. However, it was hit by a major fire last month that’s likely to delay the start of production until well into 2024.
Also sanctioned on Tuesday were Highland Gold Mining Ltd, GV Gold, Trans Siberian Gold Ltd and Kamchatka Gold. The US didn’t give a reason for sanctioning Sviblov and the mining companies in an accompanying press release, but in February warned that any company or individual operating in Russia’s metals and mining sector could be subject to sanctions.
