Nornickel plans to move some trading to Dubai

The company, the world’s biggest refined nickel producer and palladium miner, incorporated under the name Greenwich Holdings Limited within Dubai’s financial district last December, according to filings and corporate records seen by Bloomberg.

The new holding, which so far has a small team and a lawyer as a director, may eventually expand as Norilsk Nickel — also known as Nornickel — eyes handling some trading and administrative functions from Dubai, people familiar with the matter said.

Norilsk Nickel’s press service declined to comment.

The UAE has seen an influx of Russian businesses, commodity traders and expats seeking a haven from sanctions over Moscow’s invasion of Ukraine in February 2022. Other Russian commodities firms have also established a presence in the UAE as they seek to smooth their overseas operations. Some European and American banks and clients have shunned Russian entities, even if the companies themselves aren’t subject to sanctions.

Nornickel has avoided sanctions, but it still has faced disruptions in logistics, insurance, banking and shipping in the fallout from the war. Both the US and UK have imposed sanctions on its top shareholder and president, Vladimir Potanin.

In July, Norilsk Nickel sold its American distributor to a firm in California. Two banks — which the miner’s trading unit worked with — had blocked its accounts, leading to force-majeure under some deals, the people said.

The company, which also has a major trading unit in Zug, Switzerland, was forced to cut its sales in Europe, once its biggest market, as war-related sanctions discouraged some clients. Norilsk Nickel redirected sales to Asia, which doubled in the first half to about 50% of the total, the miner said on Aug. 2.