As sanctions against Russia continue to make cross-border payments and shipments increasingly difficult, MMC Norilsk Nickel PJSC, Russia’s largest miner, is exploring new projects in copper, nickel, and palladium in China.
Executives from Nornickel recently engaged in discussions with potential Chinese partners and signed around ten memorandums of understanding, covering a range of metals produced by the company. While Nornickel has not been directly sanctioned by the US or EU, the broader restrictions imposed on Russian entities following the 2022 invasion of Ukraine have impacted its operations.
With the London Metal Exchange prohibiting new deliveries of Russian metal this year and Western banks halting funding for Russian metal deals, China has emerged as Nornickel’s largest export market since 2023, accounting for more than half of its sales.
To mitigate the challenges posed by sanctions, Nornickel announced plans in April to establish a copper plant and joint venture with a local partner in China, with the goal of completing the plant by mid-2027 and utilizing the Northern Sea Route to ship copper concentrate to China.
The recent talks with Chinese partners also included discussions about building a nickel plant for battery producers, as Nornickel looks for innovative solutions to navigate the complexities of global trade in the current geopolitical environment. A spokesperson for Nornickel declined to comment on the details of the discussions.
As the global landscape for Russian metal exports continues to evolve amid sanctions, Nornickel is exploring new opportunities in China to secure its position in the market.
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