Every day Russian fertilisers move from the Vainikkala border crossing point to the Port of HaminaKotka in southeast Finland, where the major Russian fertiliser company Fosagro operates.
For food security reasons, the EU has allowed the import of Russian fertilisers since Moscow invaded Ukraine. This is why a freight train owned by North Rail Oy, a subsidiary of the Finnish logistics company Nurminen Logistics, makes daily transports of Russian fertilisers from the eastern border to the southeastern port.
These fertiliser-filled trains continue to run despite Russia's nearly three-year war in Ukraine and the European Commission's recent decision to impose import tariffs on Russian fertilisers in the bloc.
The Kremlin is now generating record-high revenues from fertiliser exports. Seven of the world's ten largest fertiliser exporters are Russian companies, which collectively earned an estimated $1.4 billion last year.
Fosagro, with its presence in Kotka, is one of the world's largest producers of phosphate-based fertilisers. It is backed by Andrei Guryev, a Russian oligarch and Vladimir Putin ally. He stepped down from the company's leadership in 2022 after the EU sanctioned his son. Later, both the US and UK imposed sanctions on Guryev himself.
According to business magazine Forbes, Guryev and his family still own nearly half of Fosagro.
Yle asked how a sanctioned fertiliser oligarch's exports are still flowing via Finland.
While Finnish Customs director general Sami Rakshit declined to comment on individual companies, he said that if a sanctioned individual holds a controlling stake in a company, the sanctions will also apply to the company.
At the same time, if Customs cannot demonstrate that the product, person, or company is subject to sanctions, the agency will not intervene.
"Fertiliser transport through the Port of Kotka is possible primarily for food security reasons," Rakshit told Yle.
"When sanctions are being circumvented, shell company arrangements are often complex, making it very difficult to identify the true beneficiaries," he added.
Russian connections
At the Port of HaminaKotka, Finnish firms Rauanheimo and Fertilog load the fertiliser onto ships. According to information obtained by Yle, Fertilog's subcontractors employ Russian-background Finnish citizens and workers from the Baltic states.
The chairman of Fertilog Group's board is Aleksei Sladkov, a Russian national living in Austria. The rest of the company's leadership also has Russian-sounding names, though Yle does not know their nationality or whether they hold Finnish citizenship.
Fertilog has stated that it accounted for ten percent of the Finnish port's traffic in 2020.
Most of the Russian fertilisers passing through Kotka are exported to North African countries and South America. Some also travel to other European countries, as long as they are not subject to sanctions.
In addition to Finland, Russia also exports fertilisers through Estonia and other Baltic countries.
In communicating with Fertilog via email, the company said its focus is on business and does not take a position on politics.
"We only handle fertilisers that are not subject to sanctions," the company said via email.
The firm also claimed to have invested 80 million euros in the HaminaKotka port over the past 15 years.
"We're a significant taxpayer and job creator in Kotka, both directly and indirectly," the company stated.
According to Fertilog, the fertilisers they handle are exported to developing countries, where they play a crucial role in global food security, as well as to EU countries, where they contribute to the EU's preparedness and security supply.
