Loading ...“Redrawing Global Trade Map”: Top Russian Miner Now Receives Half Of Its Revenue In Asia
“Those prices are set in Shanghai, a sign of how the conflict is redrawing the global trade map for commodities and handing greater power to China.”
The US and its G7 partners have slapped more than 300 economic sanctions on Russia since the invasion of Ukraine over a year ago. Initially, Washington and Brussels pitched the idea of sanctions as a strategy to paralyze Moscow. However, Western sanctions have backfired as Russian companies are redrawing commodity flows from the West to Asia.
The latest example of global supply chains being rejiggered comes from Russia’s biggest miner MMC Norilsk Nickel PJSC. Bloomberg said the miner recorded 45% of revenue from Asia for the first quarter of 2023. Traditionally, its revenue from Europe is the largest but plunged to 24%. Asia’s revenue share has increased from 27% in 2021 to 31% in 2022 to 45% in 2023.
Nornickel controls about 7% of global nickel output and 40% of palladium.