Veski says sanctions on Solikamsk plant could damage Europe’s economic security

Sanctions on Russia’s Solikamsk Magnesium Plant and its head could harm Europe’s economic security because the plant supplies critical raw materials, Kerli Veski, deputy secretary general at Estonia’s Ministry of Foreign Affairs, told ERR.

Solikamsk produces rare-earth carbonates that are processed at Silmet into pure rare-earth metals, Tallinn University of Technology chemistry professor Riina Aav said. These metals are essential to industries including Western car manufacturing.

Silmet is Europe’s only rare-earth separation facility, Aav said. It now needs to replace Solikamsk with another supplier, but finding an alternative cannot be done simply, cheaply or quickly.

Rare earths occur in small quantities and their composition varies by location, Aav said. Material from a new source may contain different elements and require different refining methods. Developing that technology takes time, while buying a process that already exists could speed up the change. Developing it locally would require investment.

Veski said many sectors in the European Union have had to find new suppliers, invest more or seek other solutions. Silmet’s situation is not unique, she said, adding that companies revise their business plans when sanctions significantly affect their operations.