Based on Ukrainian think tank’s report, Taiwan tightens export control of raw material for explosives

The Ministry of Economy of Taiwan, based on an investigation run by the Center for Defense Reform exposing Russia’s effort to get critical components for ammunition production from abroad, added nitrocellulose products to the list of goods banned for export to Russia and Belarus.

That’s according to Guildhall citing the Taiwan Central News Agency, Ukrinform reports.

The decision will come into force on June 14. Since the country has only one producer of nitrocellulose with a nitrogen content under 12.2%, and the main exporting countries are the United States and Japan, the impact of the new restriction will be negligible, the report reads.

The Department of International Trade of the Ministry of Economic Affairs of Taiwan, after banning on Macrh 8 the export to Russia and Belarus of 77 types of tools and machines, including electrical discharge machines, added nitrocellulose products to the list of goods prohibited for export to these two countries.

The Trade Department explained that nitrocellulose is a key ingredient in smokeless powder, and the European Union and United States control its exports. Taiwan originally only controlled the export of nitrocellulose with a nitrogen content of over 12.2%, and the addition of nitrocellulose with a nitrogen content of under 12.2% this time is intended to strengthen controls to eliminate loopholes in international control.

Officials from the Ministry of Economy stated that only Taiwan Nitric Corporation produces nitrocellulose with nitrogen content under 12.2%, which is mainly exported to the United States, Japan, and Vietnam and is used as adhesive for metals, wood, leather, etc., and that the new control rules will have no significant impact on the Taiwanese company.

The Ministry of Economy recalled that the fine for primary non-compliance with the rules when exporting to Russia and Belarus was increased to 1 million yuan. Industry must comply with domestic and international export control regulations and make effective use of corporate verification obligations to avoid non-compliance and further impact on goodwill and its own rights and interests.

It should be recalled that the Center for Defense Reforms think tank published a report “Russian Ammunition Coalition: who and how is helping Russia produce ammunition,” according to which a significant part of raw materials (nitrocellulose) used by Russia for the production of ammunition comes from NATO allies and partners. The main such suppliers are Taiwan, Germany, and Türkiye. Also, the report notes that China, which had not supplied nitrocellulose to Russia until 2022, became the largest supplier at the end of 2023.

On May 1, 2024, in relation to Russian companies importing nitrocellulose and cotton cellulose (raw materials used for the production of explosives and rocket fuel), as well as two Chinese companies producing nitrocellulose, which were mentioned in the said investigation, the U.S. introduced a package of sanctions.