Potanin admits trouble as Russia’s war-torn economy suffers due to sanctions
www.thebarentsobserver.com
In a meeting with Putin in the Kremlin, Vladimir Potanin said his Norilsk Nickel company is forced to operate under difficult conditions.

cross-posted from: https://lemmy.sdf.org/post/46205007

Norilsk Nickel has been a money machine for investors, and especially Vladimir Potanin, since the early 1990s when the giant metal producer was privatised. Today the oligarch is Russia’s fifth richest person with a net worth of more than €25 billion according to Forbes.

With the war all is now changing. Norilsk Nickel’s revenue has been declining for several years in a row. In late October, the company announced consolidated production results for the nine first months of 2025. Output of all key metals decreased compared to the same period last year.

“We have to work in difficult conditions,” Potanin said in a recent meeting with Putin. From time to time, the leader in the Kremlin orders Russia’s oligarchs to come to his office to talk about the state of affairs concerning their businesses.

Norilsk Nickel’s CEO talked about falling global prices and troubles caused by sanctions.

The difficulties are caused by “disruption of supply chains, payment chains, the need to reorient ourselves to new, unfamiliar markets,” Vladimir Potanin said.

The withdrawal of suppliers of key Western mining equipment due to sanctions has forced Norilsk Nickel to transition to alternative sources for its factories in Norilsk. This is a major reason for the dip in production, the company’s CEO explained.

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Although Norilsk Nickel itself is not directly sanctioned, more than ten companies associated with the mining and metallurgy giant are included in the U.S. list of sanctions, the Barents Observer has previously reported. Rosatomflot, the icebreaker operator securing year-around transport of metals from the Arctic, has also been hit by sanctions.

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