Faced with growing difficulties imposed by Western sanctions, the Russian metal giant responds by relocating its activities and expanding into new markets

by Marco Arezio

Norilsk Nickel, the Russian metals giant, has not yet fully surrendered, but pressure from Western sanctions is significantly affecting its operations, prompting the company to relocate some of its copper production operations to China.

Vladimir Potanin, CEO and majority shareholder, openly admitted in an interview with Interfax that this move is a direct response to the difficulties caused by the sanctions, including payment issues, refusal of supplies, and discounts imposed on their metals.

Despite not being directly affected by specific sanctions, Nornickel has seen a 20% reduction in its revenue since the outbreak of war in Ukraine, an increase in the cost of debt and financial transaction fees, compounded by complications related to recent US restrictions.