The United States has imposed sanctions on Russian mining magnate Vladislav Sviblov and several mining companies linked to him, including one that is developing one of the world's largest zinc mines.
The sanctions are the latest to target Russia's metals and mining sector, after the UK imposed sanctions on Sveblov last month. In recent years, Sviblov has become a major player in the Russian metals industry, acquiring several mid-sized gold companies and building a zinc mine at Ozernoye in Siberia that was planned to be one of the world's largest.
Russia's gold industry has been largely cut off from the West since the g7 imposed an import ban last year. However, as Bloomberg reported in October, the Ozernoye mine has caught the attention of traders including Trafigura Group and Open Mineral, which have been bidding to win long-term contracts to buy its zinc mines.
Now, the United States is not only sanctioning Sviblov, but also directly sanctioning Ozernaya Mining, which will make it impossible for Western companies to trade with it. Bloomberg also reported in October that two Chinese companies had been looking to buy the mine, which is located in Buryatia, a few hundred kilometers from the Chinese border.
Russia's Far East and Arctic Minister Aleksey Chekunkov said during a tour of the project last year that if it runs at full capacity, the project would be one of the world's largest zinc mines, producing 4 percent of global output. However, a fire broke out last month, which could delay the start of production until 2024.
Also sanctioned on Tuesday were Highland Gold Mining Ltd, GV Gold, Trans Siberian Gold Ltd and Kamchatka Gold. In a subsequent press release, the United States did not give any reason for sanctioning Sviblov and the mining company, but warned in February that any company or individual operating in the Russian metals and mining sector could be subject to sanctions.
