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Norilsk Nickel eyes return to conventional markets after instability period ends — CEO

At the end of 2022, Europe accounted for 47% of Norilsk Nickel's sales against 53% a year earlier, Asia - 31% against 27%

NORILSK, March 31. /TASS/. Norilsk Nickel, the world's largest producer of palladium and high-grade nickel, will try to maintain its positions on conventional markets and expects to return to them after the period of instability is over, head of the company Vladimir Potanin told reporters on Friday.

According to him, Europeans and many other consumers are interested in the company's products, but "to their own detriment" they decide to abandon traditional volumes of supplies or replace them with others - less profitable - due to an emotional assessment of the current situation.

"Therefore, we will struggle to maintain our positions on those markets. <...> We have already prepared alternative supply chains to deliver goods to the markets of Southeast Asia and other countries. We will not face a situation where, due to the European partners’ refusal from our supplies, we will not have a market. Moreover, I am convinced that after the period of instability that has come now - when it is over, I am sure that we will be strong enough to return to these markets. [Wish] our partners had the wisdom to take this pragmatically," Potanin said.

Sales geography

At the end of 2022, Europe accounted for 47% of Norilsk Nickel's sales against 53% a year earlier, Asia - 31% against 27%. North and South Americas accounted for another 15% (the figure did not change compared to 2021), Russia and the CIS accounted for 5%, the figure also did not change. In February, Mikhail Borovikov, head of the investment community department, said that the company expects a significant flow of its supplies from the European market to others in 2023.

Norilsk Nickel is a diversified metals and mining company. Its production units are located in the Norilsk Industrial District, on the Kola Peninsula and the Trans-Baikal Territory in Russia, as well as in Finland.

About sanctions

In June 2022, the UK included Vladimir Potanin on the sanctions list. Later, in December 2022, the US Treasury also imposed sanctions on the head of Norilsk Nickel. The sanctions do not affect Norilsk Nickel itself.