OREANDA-NEWS   The largest project of the Russian company Norilsk Nickel to build a copper plant in China is in danger of disruption, because the proposed Chinese partner has withdrawn from it, but it has not yet been possible to find a new one. This is reported by Bloomberg with reference to sources.

The head of the company, Vladimir Potanin, announced the transfer of part of the capacity from Norilsk to China in April 2024. Then he explained that the new site was needed to circumvent Western sanctions imposed since 2022, affecting the financial condition of the enterprise.

The Russian plant is facing difficulties in calculations, supply refusals, the need to make discounts on metal and create inventory. The refusal of American and British exchanges to accept non-ferrous metals from Russia and the high cost of intermediary services led to Norilsk Nickel losing up to 20 percent of its pre-sanctions income.

Going to China would eliminate the issue of mutual settlements and simplify the circumvention of sanctions. In addition, the company would have solved the environmental issue, since the plant built in Norilsk in 1949 requires modernization due to harmful emissions. Two years ago, it was expected that it would be closed in 2027.

In return, Norilsk Nickel wanted to build an enterprise in the port of Fangchenggang in the Guangxi Zhuang Autonomous Region with a capacity of 500,000 tons of copper per year. If it is not possible to reach an agreement with another partner, the company will have to apply to the government for permission to extend the operation of the factory located beyond the Arctic Circle.

In December, Potanin called the outgoing 2025 a breakthrough year for Russian business, as it had the opportunity to enter other markets. He thanked President Vladimir Putin and the government for taking the time to create "various kinds of alliances" for entrepreneurs, and stressed that there had never been such progress in perceiving Russia as an interesting partner on the international market.