Finland’s Harjavalta refinery, one of Europe’s largest battery-grade nickel suppliers, has maintained plans to expand production from 65,000 tonnes to 75,000 tonnes as early as 2023, against Russia’s Vladimir Potanin. British sanctions are not hindered.
Potanin, known as Russia’s “King of Nickel,” was on the latest list of British sanctions. It also imposes restrictions on other businessmen and businesses.
Finland has Harjavalta, the only foreign asset of Nornickel.
Nornickel said in a statement that the Harjavalta refinery would increase production to 75,000 tonnes in 2023 and then increase production capacity to another 100,000 tonnes by early 2026. The plant uses renewable energy and currently produces 65,000 tonnes of nickel annually.
The company estimates that this expansion will cost tens of millions of euros.
Refineries are a core supplier of battery-grade raw materials for leading European manufacturers. Harjavalta’s nickel is the key to the production of high capacity batteries used in electric vehicles.
According to Finnish customs data for the first five months of 2022, Harjavalta’s operations are the main reason why Russia’s nickel imports into Finland exceeded oil imports.
At Harjavalta, Norilsk Nickel produces about 5% of the world’s high-purity nickel supply.
In Finland, Noril Sknickel is closely linked to the industrial center of Harjabalta, which has a total of 1,000 employees. Nornickel Harjavalta employs about 300 people.
According to Kauppa Lefty, if the EU and the US follow UK leadership, mining giants could face production freezes, causing further spikes in nickel prices and jeopardizing planned investment in battery manufacturing in Europe. There is a possibility.
According to law firms Neuschwil and Bayer, unlike US sanctions, UK sanctions apply to businesses only if the sanctioned entrepreneur owns 50% or more of the shares.
Currently, Russia’s nickel giants Oleg Deripaska and Roman Abramovich are under sanctions in the United Kingdom and the United States, and together with Potanin, the company’s total stake exceeds 50%. I am. However, the two parties are known to be at odds with each other. Therefore, it does not make sense to combine ownership to consider sanctions.
As Neushville and Bayer explained, as long as Potanin is the only one involved in the operational control of Norrilsknickel, the miners are not threatened with sanctions if other countries impose sanctions on him.
https://finlandtoday.fi/harjavaltas-expansion-project-on-track-despite-sanctions-against-russias-potanin/ Despite Russia’s sanctions on Potanin, Harjavalta’s expansion project is on track | Finland Today | English News