Russia’s state-owned nuclear energy corporation, Rosatom, is continuing to provide significant financial support to the Russian budget, bolstered by the operations of its subsidiary in the Netherlands.
This influx of revenue ultimately assists in financing Russia’s war against Ukraine. According to a report from Dutch news outlet NOS, Rosatom‘s subsidiary Uranium One plays a pivotal role in securing these funds.
The recent annual report of Uranium One highlights how the company’s profits are funnelled back into Russia, contributing hundreds of millions of euros to the Russian state budget. Despite Rosatom’s direct involvement in Russia’s occupation of Ukraine’s Zaporizhzhia nuclear power plant, the corporation has thus far evaded European Union sanctions. This is largely due to the dependency of several European nations on Russian nuclear energy.
Through Uranium One, Rosatom is involved in the extraction of raw materials in Kazakhstan and Tanzania. The profits from these operations are transferred to the Netherlands before eventually being directed to Russia. In 2022, the Dutch subsidiary reported a profit of €222 million, with tens of millions of euros subsequently transferred to Rosatom. A substantial portion of these revenues is derived from uranium trading and related activities.
In 2022, Rosatom officially paid €3.1 billion in taxes to the Russian budget, illustrating the company’s importance to the country’s finances. Its contribution becomes particularly notable in light of the ongoing war in Ukraine, as such funds help sustain Russia’s war efforts.
While the European Union has imposed numerous sanctions on Russia since the invasion of Ukraine in February 2022, Rosatom has remained largely untouched. The EU’s 14th package of sanctions, approved in June 2024, marked a significant step with restrictions imposed on Russian gas for the first time. However, nuclear energy remains a sensitive issue. The reliance on Rosatom by many European nations for their energy needs has complicated discussions around sanctioning the corporation.
Unofficial reports suggest that the EU is considering extending sanctions to other sectors, including a potential ban on Russian fish imports. However, the complexity of Rosatom’s role in the European energy landscape appears to have provided the corporation with a degree of protection from more stringent measures, despite its indirect role in the war through the funding it provides to the Russian state.
Rosatom’s ongoing contribution to the Russian budget, facilitated by Uranium One, underscores the challenges Europe faces in reducing its economic ties to Russia. The intricate network of subsidiaries and international operations highlights the difficulties in enforcing sanctions that effectively target key components of Russia’s economy without causing collateral damage to European nations dependent on Russian energy.
As the war in Ukraine continues, pressure may build within the EU to target Rosatom more directly. However, this would require careful consideration of the broader impact on European energy security. For now, Rosatom’s operations in the Netherlands and beyond serve as a vital source of revenue for Russia, underpinning its capacity to continue the war.
Image source: NOS`
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