According to Norilsk Nickel’s president Vladimir Potanin, international projects such as copper concentrate smelters in China will make it possible to bring the product closer to the place of consumption, due to which the final product will no longer have the status of being produced in Russia, and it will be more difficult to impose sanctions on it.
“This largely resolves the issues of mutual settlements. Even in ‘friendly” jurisdictions, payments are now one of the biggest bottlenecks, preventing exporters and importers from carrying out their activities in a normal manner,” Potanin said.
According to him, in the near future Norilsk Nickel will have to spend 3-4 times more on debt servicing than 3-4 years ago. This is due, among other things, to discounts on Russian raw materials due to the risks associated with them.
“Several years ago we couldn’t even imagine it was possible. But in the field of payments, the risks are especially acute, because the lack thereof may bring enterprises to a halt. Of course, we must avoid these risks as much as possible. And the presence of certain production chains that lead our goods directly to the consumer market also alleviates this problem.”.
Through the creation of joint ventures with international partners, Norilsk Nickel intends to receive a share in their income in order to return a significant part of it in the form of dividends to Russia.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
