European boycotts purchase Russian metal products

Europe boycotts Nornickel: Nornickel, the renowned Russian metals producer known for its dominance in palladium and high-grade nickel production, faces a significant setback as some clients within the European Union have opted out of purchasing products made with Russian metals. Anton Berlin, the Vice President for Sales at Nornickel, revealed that despite the absence of direct Western sanctions on Nornickel itself, certain consumers are voluntarily abstaining from deals involving its metals and products sourced from Russian raw materials.

One notable casualty of this voluntary boycott is Nornickel's Finnish Harjavalta plant, responsible for producing battery materials for electric vehicles in Europe. Berlin highlighted this as a prime example of the rejection faced by-products originating from Russian materials.

CEO Vladimir Potanin had previously acknowledged the impact of sanctions on Nornickel's growth trajectory, attributing it to the "voluntary self-sanctions" implemented by some clients and foreign suppliers. Although Western governments have refrained from directly targeting Nornickel in response to the Ukraine conflict, the ripple effect of geopolitical tensions is palpable in the company's dealings.

Moreover, Berlin noted that Nornickel is grappling with a series of challenges, including difficulties in financial transactions as many banks refuse to handle money associated with Russian products. Additionally, navigating through port operations, shipping, and insurance procedures poses ongoing hurdles for the company.

In response to these adversities, Nornickel is actively reconfiguring its sales strategies, prioritizing the goal of maximizing sales despite prevailing market conditions. Following February 2022, the company strategically shifted its sales focus towards Asia, with China emerging as its largest market, accounting for over 50 per cent of the company's revenue last year.

With Reuters inputs