Nornickel Examines Impacts of U.S Sanctions on its Subsidiaries

SEATTLE (Scrap Monster): Russian mining major Nornickel announced that it is examining the potential implications of the latest sanctions imposed by the U.S. on its subsidiaries. The U.S. had imposed sanctions on several Nornickel subsidiaries and the Nornikel-controlled Bystrinsky copper and gold project.

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The statement issued by the company noted that Nornickel’s production and sales companies were not included in the U.S. sanctions list released recently on 23rd August, 2024. However, a number of group’s service companies have been included in the list. The management is currently assessing the impacts of the imposed sanctions on these companies, the statement added.

The statement has no direct reference to the sanctions against the Bystrinsky plant, whose majority shareholder is Nornickel, which owns 50.01%. The remaining shares are owned by Interros Holding (36.66%) and Chinese private equity firm Hopu’s subsidiary (13.33%). In addition to gold, copper and iron ore deposits, the project comprises of a processing plant as well.

The reluctance towards purchase of Russian metal by some Western producers had forced Nornickel to redirect the sales of its products to Asian markets. The company had reported huge slump in profits during the initial half of the current year.