Taipei, May 4 (CNA) Taiwan has imposed export controls on high-density nitrocellulose, a key explosives precursor Russia needs to produce gunpower, and so far, there is no record of Taiwanese exports of such a substance, according to Taiwan’s International Trade Administration (ITA).
The ITA said on Friday that Taiwan already has in place export controls of high-density nitrocellulose, in which the nitrogen content accounts for more than 12.2 percent of the particular chemical material.
Citing trade records, the ITA said no company in Taiwan produces high-density nitrocellulose and no outbound sales of such an explosive precursor from any Taiwanese firms have ever been recorded by the administration.
The ITA remarks came after the US Department of Treasury announced on Wednesday that it has imposed sanctions on three Russian nitrocellulose importers and suppliers — AMS Group, Stroytekhnologiya and Print Kolor — amid Russia’s full-blown incursion into Ukraine.
The US Treasury said the three Russian companies’ business partners were Russian defense enterprises, such as Russian explosive and ammunition manufacturer Kazan Gunpowder Plant, which has been sanctioned by the United States.
The US Treasury said AMS is a major importer of nitrocellulose to Russia, including from East Asia, Europe and Central Asia, while Stroytekhnologiya and Print Kolor are also among the largest Russian nitrocellulose importers.
The US Treasury said Russia depended on external suppliers for cotton cellulose and its highly flammable byproduct, nitrocellulose, which are key explosives precursors it needs to keep rolling out gunpowder, rocket propellants and other explosives.
According to the annual and monthly trade statistics compiled by the United Nations Comtrade Database obtained by CNA in late February, the three US-sanctioned Russian firms bought Taiwan-made nitrocellulose via Turkey.
The US Comtrade’s data also showed that after Russia launched its invasion against Ukraine in February 2022, almost 94 percent of Taiwan-made nitrocellulose products which were ultimately shipped to Russia from Jan. 1, 2019 to Dec. 31, 2023, were shipped in 2023, and only 4 percent were sent there in 2022.
The trade statistics showed the three largest nitrocellulose suppliers to Russia were China, Taiwan and Germany between March 1, 2022 and Dec. 31, 2023.
During the period, Russia bought US$10.60 million and US$5.43 million worth of nitrocellulose, respectively, from China and Taiwan, the data indicated.
However, the ITA emphasized that Taiwan did not sell high-density nitrocellulose, and that the country was not among the major suppliers of low-density nitrocellulose in the world.
According to the ITA, global sales value of low-density nitrocellulose, which means nitrogen accounts for less than 12.2 percent of nitrocellulose, hit US$836 million in 2023, and Taiwan’s exports totaled US$43.80 million, making up only 5.2 percent of the world’s total .
The ITA said the major buyers of Taiwan-made nitrocellulose were Vietnam, the US and Malaysia, which accounted for 47 percent of Taiwan’s total exports last year.
The ITA added that Turkey made up only 3.1 percent of Taiwan’s total nitrocellulose outbound sales in 2023, while no exports to Russia and Belarus from Taiwan were registered.
Customs declaration data obtained by CNA showed most suppliers of nitrocellulose from China and Taiwan did not provide any information regarding the nitrogen content, and simply said their products were used in printing and for the production of paint in the private sector.
The data also indicated only a small number of suppliers from China and Taiwan said nitrogen made up 12.2 percent or less than 12.2 percent of their nitrocellulose products.
Oleksandr V. Danylyuk, head of the Ukrainian think tank Center for Defense Reforms (CDR), told CNA that even if nitrogen content went below 12.5 percent, such nitrocellulose can still be used to produce explosives, adding that Taiwan should not neglect the issue.
He added that based on international standards, export controls on nitrocellulose products in which nitrogen makes up more than 12.5 percent of the content have been imposed.
To avoid the impact resulting from nitrocellulose shipments reaching Russia through a third party, the ITA said it had held 16 export control conferences in 2023 to raise awareness among Taiwanese exporters.
ITA added that it has also conducted on-site investigations of Taiwanese suppliers of nitrocellulose.
(By Chen Yun-yu, Liu Chien-ling and Frances Huang)
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