Category
Latest news

Strategic Chinese-Owned Mine in Russia`s Tuva Faces Shutdown Amid Sanctions and Regulatory Pressure

2 min read
Authors
Photo of Dariia Mykhailenko
Dariia Mykhailenko
Author
Strategic Chinese-Owned Mine in Russia`s Tuva Faces Shutdown Amid Sanctions and Regulatory Pressure
An excavator excavates the earth and rocks at the construction site of the Wubian Xiangshang reservoir on the top of Pandao Mountain in Zhangye, China, on March 3, 2025. Ilustrative photo. (Source: Getty Images)

One of Tuva’s largest industrial enterprises, the Kyzyl-Tashtyg Mining and Processing Plant, operated by LLC Lunsin, is facing the threat of closure. The facility is owned by China’s Zijin Mining Group, one of the largest mining conglomerates in China.

According to a statement from the Tuva regional government, Lunsin is grappling with financial instability stemming from the “significant expansion of international sanctions” and the subsequent reluctance of Chinese banks to engage with Russian financial institutions. The company’s General Director, Li Kaiwen, signed an order suspending operations, regional media outlet Channel 108 reported.

The plant currently employs around 1,200 workers, 800 of whom are local residents, said Ayas Bayan, Tuva’s Minister of Economic Development. In addition to financial constraints, Lunsin also pointed to a marked increase in inspections from Russian regulatory authorities.

Following news of the suspension, senior officials from both the regional government and the Prosecutor’s Office visited the site, the source told Channel 108. First Deputy Prosecutor of Tuva Vladimir Bolshunov subsequently held talks with the company’s management and workforce. An official inquiry into the plant’s operations is now underway, with a focus on labor law compliance and the protection of investment-related rights.

While the government acknowledged “an imbalance in labor relations,” officials confirmed that operations at the plant have not been fully halted. A working group has been established to review the decision, and authorities have pledged to reassess the potential shutdown. Meanwhile, the head of the enterprise has departed for China to negotiate directly with Zijin Mining Group.

Earlier, the European Union is preparing a new wave of sanctions that, for the first time, will formally accuse Russia of deploying chemical weapons in its war against Ukraine. A draft regulation cites the use of CS gas, commonly known as tear gas, as a weapon of war, marking a significant escalation in the EU’s response.

See all