RUSSIAN mining giant Nornickel said it was examining the implications of new US sanctions on its subsidiaries not involved in the company’s production and sales.
On Friday (23/8), the US imposed sanctions on several Nornickel subsidiaries as well as the Bystrinsky copper and gold project controlled by Nornickel.
“These companies are listed among 400 entities and individuals whose products and services enable Russia to sustain its war effort and evade sanctions,” according to the U.S. Treasury Department.
“The group’s production and sales companies (PJSC MMC Norilsk Nickel, Polar Division and its subsidiaries, Kola MMC and its subsidiaries) are not included in the US sanctions list dated August 23, 2024,” the company said in a statement.
“A number of the group’s service companies are on the sanctions list. The company’s management is assessing the impact of the sanctions imposed,” he added.
Nornickel, the world’s largest palladium producer and a major producer of high-grade nickel, is not subject to direct Western sanctions.
Read also: Hoping for Money, US Gives Ukraine Sanctions on Russia
But sanctions against Moscow have prompted some Western producers to avoid buying Russian metal and complicated payments, prompting Nornickel to shift sales to Asia and try to move some of its final stages of production abroad.
In its statement, the company did not mention sanctions against the Bystrinsky plant. Nornickel indirectly owns 50.01% of the plant.
According to the latest data available at the end of 2023, Bystrinsky’s other shareholders include Nornickel’s major shareholder, Interros Holding with 36.66%, and a subsidiary of Chinese private equity firm Hopu with another 13.33%.
The remote project in Russia’s Far East includes gold, copper and iron ore deposits and a processing plant. The products are mostly supplied to China. (Mining/Z-2)
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