Russian Norilsk Nickel Seeks an Alternative to European Transportation Routes | Finland Today | News in English |

One of the world’s largest producers of nickel, copper and other metals, Russian Norilsk Nickel will soon face new challenges in transportation chains.

On the one hand, the Russian Arctic, the company’s main region of operation, will see an increase in shipping traffic and the construction of new logistics centers. In particular, it is about the investment of €300 million, which the company invests into the modernization of the infrastructure in the water area of the large Siberian river—the Yenisei.

Nornickel’s current development projects include the construction of a new enrichment plant in Talnakh, as well as a large-scale reconstruction program in the city of Norilsk.

On the other hand, sanctions risks persist. For example, the Finnish railway company VR announced that it plans to stop transporting Russian cargo from 2023.

At present, all cargo between the Finnish and Russian divisions of Nornickel is transported by rail.

This raises a challenge and an over-emphasis on the search for alternative ways of delivery.

Ravil Nasybullov, director of the company’s logistics department, doesn’t rule out that the freight traffic will be rerouted to the East, which will require the use of icebreakers on the route.

“All products are delivered from Murmansk to European markets. From the point of view of the eastern corridor, it is not so much in demand at the moment, but considering the situation, I do not rule out that our cargo flow to the East will actually change. The company is also working on the possibility of organizing the transshipment in the ports of North Africa if the European ports and the market are closed,” he said.

Earlier, it was reported that Nornickel’s cargo turnover along the Northern Sea Route over the last five years is 1.3–1.5 million tons a year.

After the completion of a number of major investment projects at production facilities, approximately from 2025, the company said, is expected to increase the volume of transportation of nickel-copper converter matte by 100–200 thousand tons per year.

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