Putin’s Move to Control Global Supply of a Vital War Material?

Putin's Move to Control Global Supply of a Vital War Material?

A new export control procedure has been introduced in Russia for the unprocessed lead and lead-containing waste and scrap, effective until June 20, according to Kommersant, a Russian newspaper, citing the relevant government decree. The Ministry of Industry and Trade now requires a license for the export of lead and lead-containing waste to countries outside the Eurasian Economic Union (EEU).

Russia does not have its own primary lead production, with the metal being extracted from secondary raw materials, mainly old batteries, at a rate of around 200,000 tons per year. Lead is also used in the automotive, nuclear and defense industries, particularly for the production of ammunition, with no domestic battery production in Russia.

Experts believe the government’s new regulation is not only aimed at combating illegal lead scrap and export, but also at supporting the defense industry. “The restrictions themselves are necessary to replenish the defense industry’s stockpiles” said Maxim Chudalow, head of strategy at Vector Capital.

Kommersant notes that similar restrictions were introduced in Russia in the summer of 2022, when the Ministry of Industry and Trade announced the introduction of a licensing system to combat illegal collectors and processors of hazardous lead waste. At the time, the ministry estimated that around 3,000 tons of Russia’s lead production were lost to the grey market. Experts, however, attributed the restrictions to the government’s desire to secure the defense industry against a potential lead shortage.