A Chinese company bought at least US$7.4 million worth of copper alloy ingots from a plant in a Russian-annexed region of Ukraine that is subject to Western sanctions, Russian customs data showed.
China has not imposed any restrictions on trade with Russia, but the US has threatened to blacklist companies round the world for contravening its sanctions and warned Beijing against supplying Moscow with goods banned by US export rules.
The customs information, drawn from one commercial trade data provider and cross-checked with two others, shows some of the first evidence of Chinese trades with Russian-annexed regions of Ukraine since the war began on Feb. 24 last year.
Photo: EPA-EFE
The Chinese firm, Quzhou Nova Import and Export Co (衢州囡囡進出口), bought at least 3,220 tonnes of copper alloy in ingots worth a total of US$7.4 million from the Debaltsevsky Plant of Metallurgical Engineering between Oct. 8 last year and March 24, the data showed.
The plant is in Debaltseve in the Donetsk region of eastern Ukraine, close to the border with Luhansk. Donetsk and Luhansk were among four Ukrainian regions that Russian President Vladimir Putin claimed in September last year as part of Russia.
Quzhou Nova, a trading and manufacturing company based in Quzhou in the eastern province of Zhejiang, said it does not have any import and export business related to the trade of copper alloy in ingots.
When Reuters showed details of the exports in the customs data to Quzhou Nova, the company on March 23 said that it “finds hard to understand the document, because this document is not stamped and signed,” and suggested contacting customs about the issue.
The database, which collects information on all shipments worldwide, does not display stamps or signatures on its information.
The Chinese customs service did not provide detailed information on imports.
It said that “company trade data are not disclosed in our public information.”
China imported copper and copper alloys worth $852 million from Russia between October and February, according to public customs statistics.
A source at the Debaltsevsky plant, who spoke on the condition of anonymity, said there was a nonferrous metallurgy workshop on the territory of the factory.
The source declined to comment on the issue of copper alloy shipments to China, saying the information was a “trade secret.”
Contacted for comment, the Russian Federal Customs Service said that information on companies is confidential and is not disclosed by the service.
When asked about the matter on Friday, the Kremlin said it did not know whether information about the transaction was true or what proof was available.
It said it had no information about the subject itself.
The Debaltsevsky Plant did not respond to requests for comments by telephone and in writing.
Ukraine, its Western allies and an overwhelming majority of countries at the UN General Assembly have condemned Russia’s declared annexation of the four regions as illegal.
US sanctions imposed on Feb. 21 last year, three days before Russia invaded Ukraine, prohibit US imports from or exports to the so-called Donetsk and Luhansk People’s Republics.
Two days later, the EU announced measures including an import ban on goods from the two regions.
While Chinese companies are free as far as their authorities are concerned to trade with firms in Russian-controlled regions of Ukraine, they do risk being added to Western blacklists.
Asked about the copper shipments data, the US Department of State said it was concerned about Beijing’s alignment with Moscow.
“We have warned the PRC [People’s Republic of China] that assistance to Russia’s war effort would have serious consequences. We will not hesitate to move against entities, including PRC firms, that help Russia wage war against Ukraine or help Russia circumvent sanctions,” it said in a statement, listing some Chinese companies already sanctioned.
The European Commission did not respond to questions as to whether Chinese companies cooperated with the Russian-annexed Ukrainian territories and what risks such activity posed.
The Chinese Ministry of Commerce did not respond to requests for comment about the shipments of copper alloys from the Debaltsevsky Plant or cooperation with businesses in the Donetsk region.
The data is based on shipping and customs documents such as bill of lading and shipping bills, and were collected from several customs departments, government bodies and other partners.
Quzhou Nova says it specializes in the export of wrapping paper.
Its Web site says that it manufactures and trades goods for the tobacco industry, including paper, aluminum foil and polypropylene film.
Reuters could not establish what use the copper alloy was intended for.
The Ukrainian plant — 70km from the Russian-controlled Ukrainian city of Donetsk — specializes in making equipment and spare parts for ferrous metallurgy, the mining industry and cement plants, and has steelmaking and metal casting workshops, its Web site says.
Reuters was unable to find data about the financial state of the company. It was added to the Russian state tax register in December last year and has yet to report financial data.
According to a Ukrainian register, the legal status of the plant in Debaltseve has been suspended by the Ukrainian authorities. The register does not indicate when or why this happened.
As of early this year, its only owner was the Ukrainian Donetsk regional state administration.
The Ukrainian government, as well as the Russian-appointed Donetsk People’s Republic administration, did not immediately comment about cooperation with Chinese companies and shipments of goods to China.
The copper alloy shipments from the plant were carried out via the Port of Novorossiysk in southern Russia, the customs data showed.
Copper for May delivery on Friday fell US$0.01 to US$4.11 per pound, rising 2.24 percent from the previous week.
Other commodities:
‧ Gold for June delivery fell US$39.50 to US$2,015.80 per ounce, falling 0.52 percent weekly.
‧ May silver fell US$0.47 to US$25.46 per ounce, gaining 1.47 percent for the week.
Additional reporting by AP
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