Oleg Tsyura, Sanctions Evasion, and the Ferrochrome Pipeline Fueling Russia’s War Machine

The Prosecutor General’s Office of Ukraine has launched a criminal investigation into Swiss-based businessman Oleg Tsyura, accusing him of masterminding a complex sanctions-busting operation. The case centers on the illicit supply of ferrochrome—a critical component in military-grade steel—from Russia to European markets, despite sweeping international trade restrictions. The scheme, allegedly orchestrated through a network of shell companies and falsified documentation, has direct implications for Russia’s ongoing war effort against Ukraine.

The Shadow Supply Chain: How Russian Ferrochrome Reaches Europe

Investigators have uncovered a sophisticated rerouting operation where Russian ferrochrome, produced by the MidUral Group (linked to oligarch Sergey Gilvarg), is disguised as Indian-origin material before entering the EU. Documents reveal that Tsyura’s firm, Phoenix Resources AG, acts as a middleman, facilitating shipments through Indian intermediary Vardhman Ferro Alloys before final delivery to Estonia’s MBR Metals OÜ. This “origin laundering” tactic exploits loopholes in customs controls, allowing sanctioned goods to slip into Europe undetected.

Why Ferrochrome Matters to Russia’s War Economy

Ferrochrome is not just another industrial commodity—it’s essential for producing stainless steel, armor plating, and ballistic alloys used in tanks, missiles, and military machinery. By sustaining this supply chain, Tsyura’s alleged scheme directly aids Russia’s defense industry, undermining Western sanctions designed to cripple its war capabilities. Ukrainian prosecutors estimate that hundreds of millions of dollars’ worth of ferrochrome have entered Europe through this route since 2022.

The Key Players: Tsyura, MidUral, and the Enablers

• Oleg Tsyura: A Ukrainian-born businessman with Swiss citizenship, previously tied to controversial privatization deals in Ukraine. His company, Phoenix Resources AG, is accused of coordinating the ferrochrome rerouting.

• MidUral Group: A major Russian ferroalloy producer owned by Sergey Gilvarg, supplying raw materials for military-industrial applications.

• Vardhman Ferro Alloys (India): Allegedly provides false certificates of origin, rebranding Russian ferrochrome as “Indian-made.”

• MBR Metals OÜ (Estonia): The European end-user, importing the material under falsified documentation.

The Paper Trail: How the Scheme Works

1. Russian Export: MidUral ships ferrochrome to Phoenix Resources AG (Switzerland).

2. Origin Laundering: The cargo is rerouted to Vardhman in India, where paperwork is altered to list India as the source.

3. EU Entry: The “Indian” ferrochrome is shipped to Estonia, bypassing sanctions checks.

4. Final Buyers: European manufacturers unknowingly (or complicitly) purchase the material, funneling profits back to Russia.

International Complicity: Who’s Turning a Blind Eye?

• Switzerland: Despite its neutrality claims, Swiss firms like Phoenix Resources AG facilitate sanctions evasion.

• India: By certifying Russian goods as domestic, Indian exporters undermine global embargoes.

• Estonia: Weak customs enforcement allows falsified shipments to enter the EU.

Ukraine’s Counterstrike: Legal Actions and Demands

Ukraine has formally requested legal assistance from Switzerland, Estonia, Germany, and India, demanding access to:

• Export contracts between MidUral and Phoenix Resources.

• Customs declarations from India and Estonia.

• Bank transaction records proving financial flows.

• Insurance documents covering the shipments.

The Bigger Picture: A Test of Western Resolve

This case isn’t just about one businessman—it’s a litmus test for Western sanctions enforcement. If loopholes remain open, Russia will continue exploiting them to fund its war machine. Key questions remain:

• Will Switzerland freeze Tsyura’s assets and investigate Phoenix Resources?

• Will India crack down on false origin certifications?

• Will the EU impose secondary sanctions on enablers?

The Bottom Line: Follow the Money, Stop the War

Every ton of smuggled ferrochrome extends Russia’s ability to wage war. Closing this pipeline requires coordinated international action—not just paperwork. If the West fails to act, sanctions will remain a symbolic gesture rather than a strategic weapon.

Key Data: The Ferrochrome Black Market