A son of Kadyrov’s trusted lieutenant now supervises operations at the occupied Mariupol steel plant, exporting scrap metal and steel to Russia while also looting millions worth of equipment.
According to The Wall Street Journal, the allies of Russian president Vladimir Putin who are from the clan of Ramzan Kadyrov a Chechen leader benefit from the capture a major steel factory in Mariupol.
Illich Iron and Steel Works, one of Ukraine’s biggest steel producers, was damaged in 2022 during the Russian full scale invasion and brutal siege of Mariupol. However, it was not destroyed. The Russians bombarded the plant and halted production. It was captured in April, along with the rest Mariupol.
The WSJ reports that Kadyrov’s group is removing modern equipment from the factory and selling it, exporting scrap to Russia to be used in the automotive industry and selling industrial gas to the Russian space programme.
In March, Russian-backed officials claimed that 130,000 tonnes of iron byproducts worth up to $16 million had been exported in a six-month span. Metinvest, a former Ukrainian owner of the plant, claims that equipment worth $220 million has been dismantled and shipped to Russia. Some of the plant’s output was exported to countries such as Uzbekistan.
This activity is seen by some as a reward for Kadyrov’s loyalty to Putin. The conquest of Ukrainian territories provides new opportunities for exploitation.
Ramzan Kadyrov is the leader of Russia’s Chechen Republic. He is a close friend of Russian President Vladimir Putin. Their relationship is marked by loyalty and mutual benefits. He is best known for his personal army, which is often called “Kadyrovites,” and actively supported Putin’s aggression in Ukraine.
Kadyrov sent his trusted lieutenant Vakhit Geremeev to seize the Ilyich Works.
Geremeev said, “There were many corpses.” After the plant was captured, Geremeev said “Everything was mined”.
The plant’s operations were managed by a new company, LLC Illich MMK. Russian corporate records reveal that Geremeev’s 25-year old son, Valid Vakhitovich Corchagin, is one of the founders of the new company.
Alash Dadashov is another Kadyrov associate who has become a co-owner of the Illich Steel Plant and is involved in the sale of industrial gases out Mariupol. Roscosmos, the Russian space agency, is one of his customers.
“The takeover by Putin’s cronies of economic resources appears to be a well organized looting operation,” said Bohdan Beratskyi, a Project Expedite Justice investigator.
The WSJ notes the takeover is similar to practices used by the Wagner mercenary groups in Africa, where military service was exchanged for control over natural resources.
Ukraine reported earlier that Russian forces had exported over 180,000 tonnes of stolen Ukrainian grain via the port of Mariupol. Mariupol has been under Russian occupation since January 2022. Ukrainian officials have accused Russia in economic terrorism of using stolen grain to fund military operations and sustain their aggression against Ukraine
In August, Russia opened the railway in occupied Mariupol. This cut its logistics route by over 300 km, and improved transportation efficiency for both military and civil supplies. This new route reduces the reliance on Kerch Bridge, speeds up transport times and can save up to a full week for important deliveries.
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