Sanctioned oligarch supplies Ukrainian titanium raw materials for needs of Russian defence industry

The Security Service of Ukraine (SSU) has collected evidence on Mikhail Shelkov, sanctioned oligarch from Russia, who is involved in the schemes of covert supply of Ukrainian titanium raw materials to the aggressor country.

Source: press services of the SSU and the Prosecutor General's Office

Quote: "To implement the transactions, the Russian used the Demuryne Mining and Processing Plant LLC that he owned in Dnipropetrovsk Oblast.

Rare minerals from the deposits of the Ukrainian company are essential components for the production of high-quality titanium.

It was Shelkov who provided them to the Russian Federation on the order of enterprises of the Russian military-industrial complex. Among them are the manufacturers of Kalibr cruise missiles, MiG-35 and SU-35 combat aircraft, as well as Ka-52 helicopters."

Details: The special service reminds that in early February 2023, the Demuryne Mining and Processing Plant was transferred to the state ownership of Ukraine.

According to the investigation, Shelkov covertly became the beneficial owner of a Ukrainian mining company even before the full-scale Russian invasion began.

With the assistance of the close circle of the Russian President, in 2011, the Russian oligarch acquired a controlling stake in the world's largest titanium producer, which was part of the Russian state military corporation.

For such a "favor", he, in turn, had to ensure the uninterrupted supply of titanium products to enterprises of the Russian military and defense industry.

To do this, at the end of 2011, the suspect took control of a Ukrainian mining and processing plant, which was engaged in the extraction of rare titanium-containing minerals at the Vovchanske deposit in Dnipro Oblast.

The actual management of the enterprise was carried out through VSMPO-AVISMA Corporation, the Russian monopolist for the production of titanium. He carried out this together with the advisor to the company's general director.

According to the investigation, it is part of the structure of the largest producers of weapons for the Russian occupying groups fighting against Ukraine.

After 24 February 2022, Shelkov wanted to conceal his ties with industrial assets in Ukraine to avoid sanctions.

To do this, he tried to transfer the formal management of the Ukrainian mining enterprise to a controlled commercial structure in Dnipro Oblast.

However, the Security Service officers exposed the deal, promptly blocked it and initiated the transfer of 100% of Russian property to the state budget of Ukraine.

Based on the collected evidence, the investigators of the Security Service informed Shelkov and his accomplice Fedoseev of the suspicion of financing actions that aimed to forcefully change or overthrow the constitutional order or seize state power, and change the state borders of Ukraine.

Since the culprits are in Russia now, comprehensive measures are being taken to bring them to justice for crimes against Ukraine.

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