Estonia presses Silmet for plan to end Russian raw material use

Estonia’s government is still waiting for a clear plan from Neo Materials, the parent company of the Silmet plant in Sillamäe, on how it will stop using Russian raw materials by the end of the year, ERR reports. Foreign Minister Margus Tsahkna said the proposed deadline was encouraging but should be viewed realistically.

Silmet’s reliance on the Solikamsk magnesium plant in Russia came under scrutiny last week, when Estonia asked for the supplier to be exempted from European Union sanctions. Tsahkna said the government had long pressed Silmet to end its use of Russian materials and had heard various promises from the company.

“Silmet makes its own business decisions, as it is a company,” Tsahkna said. “But our message has been clear: if the necessary steps are not taken by a certain time, Estonia will add the company in question to the sanctions list.”

The Silmet 2.0 modernisation programme has been designated a European strategic project. Ave Schank-Lukas, head of the European Commission Representation in Estonia, said the designation does not automatically bring funding, but the Commission can help find funding opportunities and speed up planning. Estonia can also help ensure the plant’s expansion moves ahead quickly, she said.

Faster upgrades and reconfiguration could make it easier for Silmet to move away from Russian supplies. Energy and Environment Minister Erkki Keldo said the European Commission was working to identify new mines, but materials from those sources have different compositions and would require new investment at Silmet to process them.

Tsahkna said changes to raw material supply chains require costly technological investment. He said Estonia’s goal was not only to end reliance on Russian materials, but also to expand production and innovation so the country could become a leading producer in the European Union and beyond China.

It remains unclear whether the changes can be made within the timetable set by Neo Materials. The company could not be reached by ERR’s Aktuaalne kaamera programme on Thursday.