China and Saudi Arabia halt crucial MDI chemical shipments to Russia amid sanctions
In a significant development, China and Saudi Arabia have stopped the supply of irreplaceable chemical products to Russia. Currently, Russia is entirely dependent on imported MDI, especially following the European Union's 14th sanctions package.
According to the Polish newspaper Rzeczpospolita, Chinese giant Wanhua Chemical Group and Saudi firm Sadara Chemical have ceased shipments of isocyanates (MDI) to Russia. This chemical is crucial in sectors like automotive, construction, and household appliance manufacturing.
The halting of MDI supplies leaves Russia in a critical position as the country depends entirely on these imports. Following the recent European Union sanctions, EU, US, and Japanese companies also stopped exporting MDI to Russia.
Given MDI's short shelf life, prolonged shipments via intermediaries from third countries are not feasible, making sanctions evasion increasingly difficult.
Despite plans to initiate domestic MDI production back in 2014, Russia has failed to establish even a single full-scale plant in the past decade.
In light of China and Saudi Arabia's decision, 20 major Russian automotive, construction, and household appliance manufacturers have jointly written to the government, urging immediate action.
Isocyanates are organic compounds derived from isocyanic acid and are mainly used in industrial applications with polyatomic alcohols for polyurethane synthesis. Methyl isocyanate is also used in pesticide synthesis.