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Middle East conflict

Situation in Middle East does not critically impact Norilsk Nickel’s supply logistics

Vice President Anton Berlin said that ships take about three weeks longer to sail, and freight costs are slightly higher

MOSCOW, April 17. /TASS/. The situation in the Middle East has impacted Norilsk Nickel’s supply logistics, but not critically, with ships taking around three weeks longer to sail, and freight rates having increased, said Anton Berlin, Vice President, Head of the Unit of Sales and Commerce at Norilsk Nickel.

"The situation in the Middle East has had an impact as non-ferrous metals we transport by sea used to be supplied either through the Suez Canal or around Africa, depending on the political situation. Now they only go around Africa, not through the Suez Canal. This creates some logistical inconveniences but they’re not critical: ships take about three weeks longer to sail, and freight costs are slightly higher," he told reporters.

However, given the price of non-ferrous metals, this is not so noticeable, Berlin added.

The US and Israel launched a large-scale operation against Iran on February 28. On April 7, US President Donald Trump announced a two-week mutual ceasefire with the Islamic Republic. On April 11, Iran and the US held several rounds of talks in Islamabad. Tehran and Washington later reported that the parties failed to reach an agreement on a long-term settlement to the conflict due to a number of differences. Whether a new round of consultations will take place is still unknown. Moreover, the US imposed a naval blockade on Iran on April 13.

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