Severnaya Zvezda LLC, engaged in the project for a coking coal processing plant, revealed in the arbitration court the disappointing consequences of sanctions imposed by the US.
Severnaya Zvezda has been developing the Syradasay coal deposit in the Taimyr Peninsula for several years. The resource of the field is estimated at 5 billion tons and investments in the project amount to 45–50 billion rubles.
The investment portal for the Arctic zone of Russia says that the project to build a concentrating plant on the Syradasy deposit is part of the strategy for socio-economic development in the Arctic and plans to increase cargo flow along the Northern Sea Route up to 80 million tons per year.
Recently, the Moscow Arbitration Court finished considering a case where Severnaya Zvezd appeared as a defendant.
The court documents include consequences of US sanctions against the company.
The document contains the following phrases:
Severnaya Zvezda cannot conclude foreign trade contracts – that is, due to the imposition of sanctions, the company has been deprived of the ability to sell products from the enrichment plant. Purchase (sale) of coking coal concentrate for production and sale turned out to be impossible, both in hostile jurisdictions and friendly jurisdictions, due to risk of secondary sanctions.
Severnaya Zvezda has also been deprived the opportunity to export products from its production site…
In fact, the only way for Severnaya Zvezda LLC to export its products is by transporting them by sea vessels along the Northern Sea Route. However… swimming in the waters of the Northern Sea Route is carried out only with the permission of the Federal State Budgetary Institution Glavsevmorput. In order to obtain the specified permit, it is necessary that the vessel has the appropriate ice class…
However, due to the imposed sanctions, Severnaya Zvezda LLC cannot purchase such vessels abroad. Among other things, Severnaya Zvezda LLC is also deprived of the opportunity to charter (hire) vessels of a suitable ice class suitable for transporting coal.
