Nornickel, the world’s largest palladium producer and a significant nickel producer, revealed on Friday that some European Union clients had declined to purchase goods manufactured with Russian metals.
While Nornickel and its metals aren’t directly targeted by Western sanctions, some consumers are opting out of deals involving its metals and products derived from Russian raw materials, stated Anton Berlin, the company’s vice president for sales.
The impact extended to Nornickel’s Finnish Harjavalta plant, which produces battery materials for electric vehicles in Europe.
CEO Vladimir Potanin previously mentioned that sanctions had hindered Nornickel’s growth due to self-imposed sanctions by certain clients and foreign equipment and technology suppliers.
Despite this, Western governments haven’t directly sanctioned Nornickel in response to the Ukraine conflict.
Berlin highlighted challenges in banking and logistics, with many banks refusing money transfers for Russian products and hurdles faced in dealing with ports, ships, and insurance companies. Nornickel is restructuring its sales approach with a focus on selling its entire production output.
Following February 2022, Nornickel shifted its sales emphasis to Asia, where it now generates over 50% of its revenue, with China emerging as its largest market.
The company forecasts lower nickel and palladium output compared to the previous year, aiming to integrate into the global economy’s value chain.
Berlin emphasized prioritizing integration into the battery sector for nickel and exploring new palladium applications amid uncertainties.
Nornickel collaborates with Russian and international researchers for fundamental research to mitigate potential losses from declining autocatalyst demand, as noted by its head of product development in 2021.
