Synthos: EU sanctions on Russian synthetic rubber imports ‘meaningless'

OSWIECIM, Poland—Synthetic rubber producer Synthos S.A. said it was deeply disappointed with the package of sanctions the European Union imposed on SR imports from Russia, calling the measures "meaningless."

The Oswiecim-based firm has publicly supported Ukraine since the start of the Russian invasion in February 2022, and had advocated for strict EU sanctions to stop the flow of money to Russia, Synthos said in a March 10 statement.

But after opposition surfaced to the proposed ban on synthetic rubber and carbon black, the Feb. 25 package of sanctions—which coincided with the first anniversary of the unprovoked invasion—the EU imposed a ban, but one that won't take effect until July 1, 2024.

Until that time, the EU will allow a quota of 562,973 metric tons of synthetic rubber to be imported from Russia, along with 752,475 tons of carbon black. The totals are based on historical import data, a spokeswoman for the European Commission told Rubber News.

Synthos said it considers the quotas higher than pre-war imports, "which self-evidently makes this sanction meaningless."

The SR producer added that it was not only disappointed with the continued support of Russia, but also believes the EU Commission missed an opportunity to protect the European chemical industry and its work force. The continued influx of low-cost materials from Russia is a threat to the European chemical sector, which is facing a significant restructuring in light of the continued influx of the Russian imports.

Opposition to the bans centered from nations where tire manufacturers in the past have relied on Russian supply to meet its production needs. While the import of tires from Russia was among the earlier sanctions imposed by the EU, the shipments of SR were allowed to continue, though some tire makers in Europe tried to cease buying Russian rubber as a show of support for Ukraine.

Reports indicate they were able to replace roughly two-thirds of their needs from other nations, but often at higher costs, cutting deeply into margins. Industry data said Russian imports accounted for half of European imports of SR before the invasion, but that percentage dropped to about 30 percent of the imports for 2022.

"We know from our own experience that sanctions are not easy, and we faced financial consequences after deciding to stop all procurement from and sales to Russia in February 2022," Matteo Marchisio, Synthos business unit director for synthetic rubber, said in a statement.

"But sanctions are not meant to be easy. They are primarily designed to prevent hard currency from flowing into Russia. ... We believe that the EU has missed an opportunity to take responsibility and protect its own chemical industry."

Synthos also urged European rubber consumers to reconsider their purchasing strategy and join those who in the past year have "effectively turned away from Russia, thereby reducing financial support to Russia."

The Synthos Capital Group business includes production and sales of chemical products used as raw materials in a wide range of industries, particularly the tire, construction and packaging sectors.