Bloomberg: Dubai is becoming a global trading hub for Russian commodities

Bloomberg: Dubai is becoming a global trading hub for Russian commodities

Bloomberg: Dubai is becoming a global trading hub for Russian commodities

23 June, 10:26
Traders of Russian commodities are rushing to move their business to Dubai. According to experts, this is due to the fact that Switzerland violated its neutrality and supported all EU sanctions and restrictions against Russia.

As the Bloomberg agency notes, to which Forbes magazine refers, today all Swiss banks refuse to finance deals on Russian energy resources. Moreover, freight companies and insurers refuse to provide their services. It is for these reasons that more and more large companies open offices in the United Arab Emirates.

Switzerland, according to Forbes, has been a major center for energy trading for decades, but now Western sanctions against Russia are leading to business migration to Dubai, which has not imposed any restrictions on sanctions against the Kremlin. As a result, as it turned out, top managers of Rosneft had already flown to Dubai to explore the possibility of creating a trading division in the UAE. Part of operations and personnel from Geneva to Dubai is considering moving Lukoil's trading arm, Litasco. Gazpromneft also intends to expand its presence in the emirate.

Bloomberg journalists found out that Solaris Commodities, a Russian grain trading company, opened its office in Dubai. And although agricultural products did not fall under EU sanctions, it became more difficult for merchants to receive money in Swiss banks.

Based in the Swiss city of Zug, Suek AG, the exclusive seller of coal from Russia's largest producer, plans to set up a trading business in Dubai.

EuroChem Group AG, one of the world's largest fertilizer producers with most of its assets in Russia, is also setting up a facility in Dubai.

According to Al Jazeera analysts, Dubai's many free trade zones, its proximity to Middle Eastern energy producers and low taxation have proven to be tempting for Russian business. Last year, the Dubai Multi-Commodity Center, together with the Moscow Chamber of Commerce and Industry, hosted an event aimed at attracting Russians to create companies and even corporations there. Today, this business is on a grand scale.

“The UAE is turning into a true global trading hub for Russian raw materials,” said Najla Al Qassimi , Dubai director of global affairs at the formerly Geneva-based think tank B'huth.

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