The Russian giant Nornickel eyeing Morocco to transfer its supply chains

Potanin, a businessman and former Deputy Prime Minister of the Russian Federation, said in this capacity that he plans to transfer supply chains to more friendly countries, mainly in this case Morocco, China, Turkey and other Arab countries.

“In terms of production, supply chains have changed, settlement systems have collapsed – and with all the ensuing consequences. For example, at Norilsk Nickel, working capital has increased significantly due to the slowdown in all these process and their complication,” he said.

Norilsk Nickel’s net working capital has generally remained below the $1 billion level, at the end of 2021 it stood at $1.27 billion and in the first half of 2022 it fell to 3.8 billion due to an increase in inventories of steel products, materials and spare parts, as well as a significant appreciation of the ruble.

Now the company has to move many projects “to the right”, which is due to the need for redesign, the search for new equipment due to the refusal of Western customers to supply them, Potanin said.

As a result, the company’s strategy is increasingly focused on internal development, attracting partners from friendly jurisdictions and seeking opportunities in these countries.

“For example, we planned for some businesses to expand into other markets. Conversely, we participated in various start-ups in other countries with the hope of bringing them to Russia to strengthen our business. existing here. Such opportunities have now almost completely disappeared. We are restructuring our investment policy with an even greater focus on Russia and looking for new opportunities in friendly jurisdictions,” he said.

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“The whole paradigm of our company, which was more related to the involvement in the international chain of creation of products and technologies, is now reoriented towards the internal history with an attempt to involve certain friendly countries and partners. Somewhere it works, somewhere it doesn’t. In general, this is a serious change in the planning system and in the system of expectations, ”emphasized the director of Norilsk Nickel.

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