Russian Federation seizes production of explosives from the US company Schlumberger

Russians are nationalizing the explosives production facilities of the American oil service company Schlumberger. The document stating this is published on the website of the Russian Electronic Justice. The Russian General Prosecutor's Office filed a lawsuit to nationalize the production of explosives in Bashkortostan.

The local court granted the claim at the end of July; the case files are classified, and the arbitration case archive includes empty pages. Production facilities owned by the Oilfield Production Services subsidiary were used to manufacture explosives for oil well drilling.

Production of explosives at the Avangard plant. Photo from open sources

On August 8, the company registered an appeal with the 18th Arbitration Court of Appeal in Chelyabinsk.

The party to the case was a subsidiary of Schlumberger, and on the other hand, the local office of Federal Security Service of the Russian Federation, Federal Agency for State Property Management (Rosimushchestvo), State Corporation Rostec, and its subsidiary Avangard. Avangard is involved in the production of explosives in the interests of the Russian Ministry of Defense, and it is the company that seeks to take over the production facilities of American Schlumberger.

Products of the Avangard plant, March 2023. Photo from open sources

Moreover, the companies are registered in the same premises in Sterlitamak at Oleg Koshovoy Street, 2.

It is possible that in the future, the production facility could be used to make military explosives.

In March last year, Schlumberger stopped investing and implementing technology in its operations in Russia.

In July 2023, the company announced that it would stop supplying products and technologies to Russia.