Ukraine lists US-based Allied Mineral Products as international sponsor of war

Ukraine’s National Agency on Corruption Prevention (NACP) has added US refractory products manufacturer Allied Mineral Products, LLC to the list of international sponsors of war.

Source: National Agency on Corruption Prevention

Details: The NACP said that Allied Mineral Products continues to operate in the Russian Federation, where it maintains production facilities and continues to pay hundreds of thousands of dollars in taxes to Russia.

According to data obtained by the NACP, Allied Mineral Products, LLC is represented by Allied Mineral Products Rus in Russia. In 2022, it paid US$772,000 taxes to the Russian budget and has imported US$3.5 million worth of goods to Russia since April 2022.

"In addition to continuing to operate in the Russian Federation, Allied Mineral Products Rus is based in the Alabuga economic zone (Tatarstan, Russia). This is a special economic zone, a cluster for Shahed-136 production," the NACP stressed.

The NACP said that Alabuga was created in 2006 and offered welcoming conditions for investors, including a 2% income tax (as opposed to 20% elsewhere in Russia) and a cancellation of the property tax. The zone has become Tatarstan’s main investment project, accounting for 74% of direct investment in the republic.

Alabuga offers a useful platform and serves as a Russian base for many foreign firms.

Some Western firms have left Alabuga after Russia’s full-scale invasion of Ukraine and many highly qualified personnel have resigned to avoid Russian mobilisation. This forced Alabuga's management to begin the process of transforming the free economic zone into a cluster for the production of military products, which guarantees protections against conscription.

Any firm located within the Alabuga zone could be involved in manufacturing military products or materials for them, the NACP said.

According to an investigation by Molfar, an open-source intelligence service, the presence of Allied Mineral Products in Alabuga and regular supplies to the region also play a key role in maintaining production processes in the Alabuga zone.

Since the beginning of Russia’s full-scale invasion, Allied Mineral Products Rus has imported 13 tonnes of products (402 transactions), some of which can be used for the production of UAVs.

In particular, the goods include mullite, which is used both for the production of refractory materials and for the production of mullite ceramics, which have low dielectric constant, a low coefficient of thermal expansion and good strength. It is suitable for use in high-speed microelectronic chips, the NACP said.

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