NORNICKEL, the world’s largest producer of palladium, said it was examining the implications of new US sanctions on its subsidiaries, according to a report by Reuters on August 26.
Importantly, the new sanctions do not include any of Nornickel’s platinum group metal (PGM) production or sales functions, said the newswire. However, they do include a subsidiary holding the Bystrinsky copper and gold project.
The sanctions, dated August 23, 2024, were among 400 entities and individuals “whose products and services enable Russia to sustain its war effort and evade sanctions,” according to the US Treasury Department.
“The group’s production and sales companies (PJSC MMC Norilsk Nickel, its Polar Division and subsidiaries, Kola MMC and its subsidiaries) were not included in the US sanctions list dated August 23, 2024,” said Nornickel in a statement.
“A number of the group’s service companies were included in the sanctions list. The company’s management is assessing the impact of the imposed sanctions,” it added. Nornickel is also a major producer of high-grade nickel, said Reuters.
Sanctions against Moscow prompted some Western producers to avoid buying Russian metal and complicated payments, prompting Nornickel to redirect sales to Asia and to try to transfer some final stages of its production out of the country, said Reuters.
Russia accounts for about 37.5% of global palladium supply while it also supplies about 10.6% of global platinum supply all of which comes as by-products from the Norilsk Nickel mine.
