The Swedes remain undeterred by EU sanctions: Auriant Mining AB, a Swedish mining company, continues its operations in Russia despite the potential for severe consequences. Brussels’ main concern is that companies making profits in the Russian market are effectively investing in the economy of an aggressor state, thereby indirectly supporting its military actions in Ukraine.
Despite the stringent sanctions imposed on Russia in 2022, many companies have not ceased their activities in the Russian market, driven by their pursuit of profit.
Auriant Mining AB, whose subsidiary Tardan Gold operates in Russia, is a notable example. The major shareholders include Cyprus-based Bertil Holdings Limited (holding 52%) and Per Ahlgren, who owns 25% of Auriant Mining AB through his company GoMobile Nu AB. Ahlgren exercises control through his son, Thor Ahlgren, who serves on Auriant’s board of directors. Additionally, Per Ahlgren is co-owner and chairman of the board of Mangold Fondcommission, a financial services firm. By disregarding EU sanctions, the Swedes risk significant reputational and financial damage, as the European Union has developed a ‘yellow and red cards’ system for companies engaging in such behaviour.
Sweden’s Stake in Russian Gold
Auriant Mining, through its subsidiary LLC Tardan Gold (named after the Tardan deposit), is involved in geological exploration and gold mining in Russia. Its asset portfolio includes four projects, with operations in the Republic of Tyva (notably the birthplace of former Russian Defence Minister Sergei Shoigu), ongoing since 2008, and at the Solkokon deposit in Transbaikalia, which was previously deemed unprofitable. Auriant’s shares are traded on Sweden’s Nasdaq First North Premier Growth Market. The board of directors includes esteemed experts and EU citizens such as Lord Daresbury, Preston Haskell, and Jukka Pitkäjärvi.
The Swedes have successfully implemented new technologies, leading to significant profits. For instance, in 2020, the company adopted vat-leaching technology for gold extraction, boosting productivity from 70% to 90%. Notably, Tardan Gold is the second-largest taxpayer in the Republic of Tyva. Among Russia’s 855 mining companies, Tardan Gold ranks 73rd—an impressive achievement to be among the top 100 in the industry.
Even a slight decline in revenue has not significantly impacted the company’s overall growth. In 2023, the gold miner reported revenues exceeding 30 million euros, representing a 13% decrease compared to 2022, while net profit fell by almost 50% to 4.5 million euros over the same period. The Swedish subsidiary produced 319.6 kg of gold in Russia in the first half of 2023, compared to 218.4 kg in the first half of 2024. However, the value of gold remains high, so sales volumes were not severely affected: 274.5 kg were sold in the first six months of 2024, compared to 282.8 kg in the same period of 2023.
Operating in Russia equals investing in the War
It’s important to note that in 2024, Russia allocated 14.2 trillion rubles for defence and security, accounting for 38.6% of the country’s total budget. These expenditures are unprecedented for Russia, although major global powers also devote significant portions of their budgets to defence.
The state budget is partly funded by tax payments from businesses. As mentioned earlier, Tardan Gold is a major regional taxpayer. In 2023, the Swedish gold mining company contributed at least 1.6 million euros in taxes to the Russian budget, with tax payments totalling 5.3 million euros in 2022. This means that powerful market players like Auriant Mining AB, through its subsidiary Tardan Gold, are effectively supporting Russia’s military operations in Ukraine by helping finance its army. Therefore, Auriant Mining AB’s actions are in direct contradiction to the EU’s political stance.
Overall, there is a trend in Russia where major market players send money and even employees to support the Russian Defence Forces, directly aiding the country in its special military operation.
There are also voluntary contributions from businesses—in particular, since the beginning of 2023, the Russian budget has received 35.7 billion rubles under the category of ‘voluntary receipts from non-governmental organisations.’ These funds are collected from companies that sell their Russian assets. A similar revenue line appeared in the Russian budget 2022, commonly known as the ‘exit tax.’ If the Swedes were to suddenly decide to leave the Russian market, they would once again contribute to the Russian budget—this time in the form of such a tax. However, this scenario seems unlikely: Auriant Mining AB understands that there is still significant profit to be made from Russian gold, as the resources in Tyva’s deposits are far from depleted. Having found this ‘golden opportunity,’ the Swedes are unlikely to abandon it—money appears to be more important to this company than the political views of their own country and Europe as a whole.
Special attention to business responsibility
Auriant Mining AB seems to ignore the sanctions outlined in Article 3k of EU Regulation No. 833/2014 of 31 July 2014, which prohibits EU member states from exporting goods to Russia that could enhance Russia’s industrial capabilities. And, of course, this includes gold. In reality, Auriant Mining AB is effectively ‘melting’ gold into the war by investing in Russia’s budget.
It’s worth noting that in 2022, almost immediately after the onset of Russia’s special military operation in Ukraine, Sweden strengthened its cooperation with NATO. In May 2022, the country joined the North Atlantic Alliance. In response, Russia designated Sweden as one of its ‘unfriendly states.’ Despite this, Auriant Mining AB continues its operations in Russia.
Furthermore, it’s important to remember that the European Union has already developed measures to punish individuals and entities from EU member states that violate sanctions. In May 2024, the European Union issued Directive 2024/1226, ‘On the Definition of Criminal Offences and Penalties for Violations of Restrictive Measures and Amending Directive 2018/1673.’ This directive addresses the evasion of sanctions and introduces penalties for businesses. These penalties include the withdrawal of state benefits and access to public funding, including tenders, subsidies, and concessions, the prohibition of commercial activities, and even forced liquidation. EU member states are required to incorporate this directive into national law by 20 May 2025. Therefore, Swedish Auriant Mining AB could face serious consequences.
