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Operating in the production of Shahed-136 UAVs and other weapons of the Russian Federation: Allied Mineral Products, LLC is included in the list of international sponsors of war

08.02.2024

The National Agency on Corruption Prevention (NACP) has added Allied Mineral Products, LLC, a US-based manufacturer of refractory products, to the list of international sponsors of war. The company continues to operate in Russia, maintain its production facilities there and pay hundreds of thousands of US dollars in taxes to the aggressor's budget.

Allied Mineral Products, LLC, is represented in Russia by Allied Mineral Products Rus LLC. In 2022, it paid taxes totaling USD 772 thousand to the Russian budget and imported products worth USD 3.5 million to Russia since April 2022.

In addition to continuing to operate in the Russian Federation, the production facilities of Allied Mineral Products Rus LLC are located in the Alabuga Special Economic Zone (Tatarstan, Russia). This special economic zone is a cluster for the production of Shahed-136 UAVs.

Established in 2006 with highly favorable conditions for investors, Alabuga offers an income tax rate of 2% instead of 20% and exemption from property tax. It has become the main investment project in Tatarstan, accounting for 74% of direct investment in the republic. Alabuga provides a convenient platform for numerous foreign companies operating in Russia.

With the beginning of Russia's full-scale invasion of Ukraine, some Western companies began to withdraw from Alabuga, and highly qualified personnel resigned to avoid being subjected to Russian mobilization. This forced the management of Alabuga to start the process of transforming the free economic zone into a cluster for the production of military products, which provides guarantees of receiving "reservation" from mobilization.

Accordingly, any company located within the Alabuga Free Economic Zone could potentially be involved in the manufacture of military products or materials for them.

According to Molfar OSINT agency investigation, the presence of the US manufacturer Allied Mineral Products in Alabuga and regular deliveries of goods to the region also play a key role in maintaining production processes in the Alabuga FEZ. Since the beginning of the full-scale invasion of Russia, 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 has low dielectric constant, low coefficient of thermal expansion and good strength. It is suitable for use in high-speed microelectronics chips.

Allied Mineral Products continues to operate in the territory of the terrorist state of Russia, where it supports the functioning of the Alabuga Special Economic Zone, which has already become a key location for the production of military products for the aggressor.

The NACP is the body responsible for promoting the development of a compliance system in the private sector. During compliance procedures, contractors are subject to integrity checks, including compliance with socially responsible business practices in accordance with OECD standards. The list of "International Sponsors of War" on the War and Sanctions portal is a powerful reputational tool for achieving integrity of supply chains in the international dimension, withdrawal of international business from Russia, and thus reducing the financial and technological capacity of the terrorist country to kill Ukrainians. One of the platform's "levers of pressure" is cooperation with the World-Check database, which is used by banks and insurance companies to assess risks. That is why for global companies, the consequences of being on the list are worse than continuing to do business with the aggressor country.

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