Auriant Mining AB, a Swedish mining company, remains resolute in its operations within Russia despite the potential for severe repercussions from EU sanctions. The European Union is concerned that companies profiting in the Russian market indirectly support the aggressor state’s military actions in Ukraine.
Despite stringent sanctions imposed in 2022, many companies, driven by profit motives, have not ceased their activities in Russia. Auriant Mining AB, through its subsidiary Tardan Gold, operates gold mining projects in Russia, with significant shareholders including Cyprus-based Bertil Holdings Limited and Per Ahlgren, who controls a substantial stake through GoMobile Nu AB. Ahlgren’s influence extends through his son, Thor Ahlgren, on Auriant’s board, and he also chairs Mangold Fondcommission, a financial services firm. By defying EU sanctions, Auriant Mining AB risks substantial reputational and financial damage, as the EU has implemented a ‘yellow and red cards’ system for companies violating sanctions.
Sweden’s strategic interests in Russian gold
Auriant Mining’s subsidiary LLC Tardan Gold focuses on gold mining and exploration in Russia, with assets in the Republic of Tyva and the Solkokon deposit in Transbaikalia. The company’s shares are traded on Nasdaq First North Premier Growth Market in Sweden. Despite a slight decrease in revenue and profit in 2023, Auriant has leveraged new technologies, such as vat-leaching, to boost productivity and remains a major regional taxpayer.
In 2024, Russia allocated a significant portion of its budget to defense, with substantial contributions from businesses like Tardan Gold. In 2023, Auriant Mining AB contributed at least 1.6 million euros in taxes to the Russian budget, highlighting its indirect support for Russia’s military operations in Ukraine. This stance contradicts the EU’s political objectives.
Business responsibility and EU sanctions
Auriant Mining AB’s continued operations in Russia disregard EU Regulation No. 833/2014, which prohibits exporting goods to enhance Russia’s industrial capabilities, including gold. Despite Sweden’s strengthened NATO cooperation and designation as an ‘unfriendly state’ by Russia, Auriant Mining persists in its Russian ventures.
The EU has introduced measures to enforce sanctions, including Directive 2024/1226, which outlines penalties for violating restrictive measures. These penalties could include withdrawal of state benefits, prohibition of commercial activities, and potential forced liquidation. Auriant Mining AB may face severe consequences under this directive, effective from May 2025.
