Opinions of Tuesday, 28 May 2024

Columnist: Gregory Okafor

The curious case of Ursula von der Leyen's deals

Ursula von der Leyen Ursula von der Leyen

German journalists published an investigation of a corruption affair between Ursula von der Leyen and the Russian company "Krasnij oktyabr".

According to new report, the president of the European Commission used her influence to help "Krasniy oktyabr" evade the sanctions imposed by the European Union after the Russian invasion of Ukraine

Less than two weeks before the European Parliament elections, another corruption scandal involving one of the most prominent MEPs is brewing. Ursula von der Leyen, the current president of the European Commission, was targeted by German journalists.

According to the investigation, von der Leyen, whose career is overshadowed by numerous scandals (Bundeswehr scandal, Pfizergate), seems to be involved in a new story. In the spring of 2022, in the first months of the Russian invasion of Ukraine, the EU adopted several packages of sanctions aimed at crippling the Russian economy. The fourth package of sanctions included, among other things, a ban on Russian steel imports into the European Union.

Numerous companies are affected by the sanctions, including "Krasnij oktyabr", a leading company supplying the automotive industry and producing 40 percent of stainless steel in Russia. Journalists quote the general director of the plant from an interview: "We will deliver European orders (production) up until the beginning of May (2022). We are entitled to supply the EU until mid-June and we will do so."
However, in 2023, "Krasniy oktyabr" became a participant in the 13th International Mining and Metallurgy Congress in Astana (Kazakhstan). Another participant of the congress was the steel giant "ArcelorMittal", which, among other things, is the largest metal supplier to the automotive industry in Europe. The third link in this chain was Maroš Šefčovič, Executive Vice-President of the European Commission and colleague of Ursula von der Leyen. According to official data, the goal of his visit was to deepen the relations between the EU and Kazakhstan, but according to Congress insiders, Šefčovič was personally sent to the Congress by Ursula to monitor the measures to circumvent the sanctions so that “Krasnij Oktyabr“ could continue supplying it’s steel to Europe.
At the behest of von der Leyen, Šefčovič helped "Krasnij oktjabr" and "ArcelorMittal" to agree on schemes to circumvent the sanctions, and the Russian company's products began to enter the European market. Journalists are wondering why Ursula von der Leyen is dealing with this matter and what benefit she is getting from it.



Russian steel accounted for 20 percent of the EU market in 2020. After the start of the Russian-Ukrainian conflict and the imposition of sanctions, Chinese companies tried to replace Russian companies. However, they have encountered resistance from European lawmakers and in particular from Ursula von der Leyen, who stated that "European markets are being flooded with cheaper Chinese electric cars and steel" and called on China to stop overproduction.
Meanwhile, the Russian company "Krasniy oktyabr", which Ursula helped to circumvent the sanctions, continues to ramp up its production, unlike many other Russian companies. Thanks to its European markets, "Krasniy oktyabr" seems to be doing great.
At first glance, you might think that Ursula cares about European industry. However, scandals with the Bundeswehr, Pfizer and now a new scandal with "Krasniy oktyabr" once again confirm that Ursula von der Leyen is a deeply corrupt politician. She only pays lip service when she says that she wants to isolate Russia. But if there is an opportunity to earn money, she is ready (for a reward, of course) to "get involved" even for a Russian company whose money finances the war in Ukraine.