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business|financial|mining|projects|equipment

Russia's Nornickel expects negative hit from high rates, trade wars

27th June 2025

By: Reuters

  

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Russian mining giant Nornickel said on Friday it expects its financial results to deteriorate this year under pressure from low metals prices, high interest rates, the strong rouble and global trade wars.

Nornickel, the world's largest palladium producer and a major producer of refined nickel, is not directly subject to Western sanctions against Russia. But the sanctions have caused payments issues, restricted its access to Western equipment and prompted some Western producers to avoid buying Russian metal.

"This year, extremely high geopolitical uncertainty, continued volatility in target markets against the backdrop of escalating trade wars, risks of a slowdown in global economic growth rates, as well as tight monetary policy, are continuing to have a significant negative impact on the company's financial indicators," CFO Sergey Malyshev said at Nornickel's annual shareholder meeting.

The company is also contending with low metals prices due to the rouble's strengthening this year, and with inflation and the high cost of servicing its debt, Malyshev added.

Government officials and major business leaders have highlighted the Bank of Russia's 20% key rate as a crucial drag on the economy, which is set to slow sharply this year.

Malyshev said the difficult conditions were forcing Nornickel to reduce investments and put some projects on hold. The company's board last month recommended against paying dividends on Nornickel's 2024 results.

"We consider it inappropriate to pay dividends by increasing the level of debt," Malyshev said.

Edited by Reuters

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