Cypriot Company in EU Sanctions Scandal

An investigation by Belarusian journalists has revealed a Cypriot company, Dimicandum Invest Holding, at the heart of a contract markup scheme involving Belarusian potash. Following the European Commission's ban on the import and transit of Belarusian potash in March 2022, in response to President Lukashenko's support for Russia's invasion of Ukraine, the scheme has raised significant concerns. In 2023, Belaruskali, a state-owned potash producer, contracted Dimicandum to handle cargo transfers at a Russian port, despite cheaper alternatives being available. Documents obtained by the Belarusian Investigative Center (BIC) indicate that Belaruskali agreed to pay Dimicandum $68 million for the transfer of 3.4 million tons of potash, amounting to $20 per ton. BIC's investigation suggests that this arrangement may have been orchestrated to funnel funds from the state-owned potash producer to associates of Lukashenko. The financial director of Dimicandum, A.G. Svirydau, confirmed his position but denied signing any contracts with Belaruskali when contacted by BIC reporters. The European Union has faced criticism for its handling of Belarusian potash sanctions, with some member states advocating for exemptions due to fertilizer shortages affecting countries like Brazil. However, opposition from Baltic states thwarted these efforts, leading to further sanctions against Belarus. Experts consulted by BIC assert that Dimicandum's actions still contravene EU sanctions, prompting Cypriot law enforcement to refer the matter to the appropriate agency for investigation.