Poland has seized temporary control of Russian oligarch Vyacheslav Kantor's 19.82% stake in the Warsaw-listed chemicals group Azoty, Development and Technology Minister Waldemar Buda said on July 11.

Following Russia’s invasion of Ukraine, Poland has gone to some lengths to make sure Russia is not involved in important Polish companies. Azoty is the EU’s second-biggest producer of nitrogen and compound fertilisers, as well as products such as melamine and polyamide.

“There is no room for capital linked to Russian authorities in Poland,” Buda told a press conference.

Poland will now seek a partner to buy out the stake, after which it will pay compensation for the assets, the ministry said in a statement. The compensation will however remain frozen in a bank or on a brokerage account, it said. 

Poland had earlier made similar moves to remove Russia from Europol Gaz, the manager of the Polish section of the Yamal pipeline, and Novatek Green Energy, a gas supplier

Poland intervening to establish control over Russia-linked assets is symptomatic of the role Moscow played in Polish businesses and how that role became a major security risk after the Kremlin decided to attack Ukraine in February.

Azoty stocks were 3% up immediately following the announcement. The price dropped 0.7% later in the day.

In March 2022 following Russia's full-scale military invasion of Ukraine, Vyacheslav Kantor was sanctioned by the EU, the UK, Switzerland and Ukraine. In the summer of 2022, Kantor transferred 45.1% of fertiliser major Acron shares to three top managers, formally ceasing to be the owner of a controlling stake. 

Previously sanctioned heads and shareholders of other Russian fertiliser majors have also dumped their controlling stakes. The EU’s fifth sanction package limited imports of Russian fertilisers.