The allies of Russian President Vladimir Putin from the clan of a Chechen leader, Ramzan Kadyrov, are benefiting from the capture of a major steel plant in Mariupol, Ukraine, according to The Wall Street Journal.
In 2022, the Illich Iron and Steel Works in Mariupol, one of Ukraine’s largest steel producers, was damaged during the Russian full-scale invasion and the brutal siege of the city, however it was not destroyed. Russian forces bombarded the plant, halting production, and it was eventually captured in April along with the rest of Mariupol.
The WSJ states that Kadyrov’s group is removing and selling modern equipment from the plant, exporting scrap metal to Russia for use in its automotive industry, and selling industrial gases to the Russian space program.
In March, Russian-backed authorities claimed that 130,000 tons of iron byproducts, potentially worth $16 million, had been exported over a six-month period. Metinvest, the plant’s former Ukrainian owner, alleges that equipment valued at $220 million was dismantled and sent to Russia. Some of the plant’s output has been exported to countries like Uzbekistan.
This activity is seen as a reward for Kadyrov’s loyalty to Putin, with the conquest of Ukrainian territory providing new opportunities for exploitation.
Ramzan Kadyrov, the head of Russia’s Chechen Republic, is a close ally of Russian President Vladimir Putin, maintaining a relationship marked by loyalty and mutual benefit. He is known for his personal militia, often called “Kadyrovites,” who actively supported Putin’s military aggression in Ukraine.
Kadyrov sent a trusted lieutenant, Vakhit Geremeev, to seize the Ilyich works.
Geremeev was quoted as saying, “There were a lot of corpses. Everything was mined,” when describing the plant after its capture.
A new company, LLC Illich MMK, was created to manage the plant’s operations. Russian corporate records show that one of the company’s founders is Geremeev’s 25-year-old son, Valid Vakhitovich Korchagin.
Another Kadyrov associate, Alash Dadashov, has become a joint owner of the Illich steel plant and is involved in selling industrial gases from Mariupol, with Russia’s space agency Roscosmos among the customers.
“The takeover of economic resources by Putin’s allies appears to be a well-organized looting enterprise,” said Bohdan Bernatskyi, an investigator at Project Expedite Justice.
The WSJ notes that the takeover mirrors practices used by the Wagner mercenary group in Africa, where military services were exchanged for control of natural resources.
Earlier, Ukraine reported that Russian forces exported over 180,000 tons of stolen Ukrainian grain through the port of Mariupol, a city under Russian occupation since early 2022. Ukrainian officials have accused Russia of engaging in economic terrorism, using stolen grain to finance military operations and sustain its aggression against Ukraine
In August, Russia opened a railway in occupied Mariupol, cutting its logistics route by 300 km and significantly improving transportation efficiency for military and civilian supplies. This new route reduces reliance on the Kerch Bridge and accelerates transport times, saving up to a week for key deliveries.
Related:
- Russians stole 180 thousand tons of Ukrainian grain through Mariupol port
- Russia opens Mariupol railway, cutting logistics routes by 300 km
- Mariupol Defender reclaims voice and spirit after 2.5 years in Russian captivity
- HRW, Truth Hounds document Russia’s destruction of Mariupol
- “I wish I never made this film”: director of Oscar-winning 20 Days in Mariupol
