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None of the two wealthy oligarchs controlling Nornickel, Vladimir Potanin and Oleg Deripaska, have taken a stand against Russia’s brutal war on Ukraine. Nornickel, however, is not sanctioned by the European Union, but the company is increasingly met with a cold shoulder from buyers of metals in Europe.
Total revenue amounted to $14,4 billion in 2023, down 21% year-on-year, according to the company’s financial reporting.
With mining and metallurgical production on the Taymyr Peninsula in Siberia and the Kola Peninsula in Russia’s northwestern Murmansk region, Nornickel is the world’s largest palladium producer and high-grade nickel. It is also a major producer of platinum, copper and cobalt, all metals important for the world’s shift to a greener economy.
Globally, Nornickel is mostly known for being worst on dirt as the Arctic’s biggest toxic air polluter.
Battery producers in Europe were important customers for nickel, copper and cobalt from the Russian Arctic before Putin launched his full-scale war on Ukraine in February 2022.
Murmansk port is transshipment hub for Norickel and serves both the factories in Norilsk and on the Kola Peninsula. Photo: Thomas Nilsen
Vice president for Sales, Anton Berlin, said to Reuters that some consumers are shunning deals with Nornickel for its metals made from Russian raw materials. For example, Berlin said the company’s Harjavalta plant in Finland, which produces battery materials for electric cars in Europe, was affected.
Nornickel experiences European banks refusing to transfer money for Russian products and the company is challenged in dealing with insurance companies, ships and ports, Berlin told Reuters.
Headquartered in Moscow, and restricted by Russian law from naming the war a war, Nornickel predicts troubles to continue. “In 2024, we expect that risks related to an adverse geopolitical situation will continue to impact our operations,” the company said in a statement.
Shifting sales away from Europe, Nornickel looks to Asia.
Anton Berlin said China is now the company’s largest sales market. 2023 became the first year with Asia’s share of Nornickel’s revenue exceeded 50%
Norilag monument in Norilsk, the Siberian industrial town built by Stalin’s political prisoners. Nowadays, Putin’s Russia is again sending political prisoners to Norilsk and other labor camps in the Arctic. Photo: Thomas Nilsen
