Sanctions gap lets Russian-mined nickel flow to Western markets

Global Witness reports that while the US and UK have banned Russian-origin nickel, the EU has not, creating a loophole where Russian nickel is refined in Finland and then legally exported to the US. The report highlights the environmental degradation and human rights abuses linked to Norilsk Nickel's operations in the Arctic, the company's ties to the Russian military-industrial complex, and the challenges of conducting corporate due diligence in a repressive political environment. It recommends that the EU implement targeted sanctions on Russian nickel, maintain strict thresholds for the Corporate Sustainability Due Diligence Directive (CSDDD), and prioritize circular economy strategies to reduce dependency on Russian minerals.

• A sanctions gap exists because the EU has not followed the US and UK in banning imports of Russian-origin nickel, copper, and aluminium. This allows the EU to legally import Russian nickel, with approximately two-thirds of the nearly $1.3 billion imported since April 2024 going to Finland.
• Russian-mined nickel enters the US market via a loophole involving the Norilsk Nickel Harjavalta Oy refinery in Finland. Because the metal is processed in Finland, it is considered a Finnish product and is not blocked by US sanctions, which exclude materials that have been "incorporated or substantially transformed into a foreign-made product."
• Norilsk Nickel's operations in the Russian Arctic are linked to severe environmental damage and human rights concerns. This includes a May 2020 oil spill that poisoned Indigenous fishing grounds and the ongoing emission of sulphur dioxide, which Nornickel claims was reduced by 32% from 2015 levels to 1.25 million tons in 2024.
• The Russian government has systematically silenced dissent and environmental monitoring to support its war economy. Since 2022, the Kremlin has labelled international groups like Greenpeace, WWF, and Bellona as "undesirable organisations" and declared 55 Indigenous organisations as "extremist" and "terror" groups in July 2024.
• Norilsk Nickel is linked to the Russian military-industrial complex. Leaked invoices from December 2023 show the subsidiary Kola MMC sold 27 tonnes of nickel cathodes to Uralvagonzavod, a state defence conglomerate that produces tanks used in Ukraine.
• Conducting corporate due diligence in Russia is currently considered nearly impossible due to the criminalisation of dissent. The report notes that Nornickel's self-assessment under the Initiative for Responsible Mining Assurance (IRMA) reached only the "Transparency" level, the lowest available rating.

APA

Global Witness (n.d.). Sanctions gap lets Russian-mined nickel flow to Western markets. https://globalwitness.org/en/campaigns/transition-minerals/sanctions-gap-lets-russian-mined-nickel-flow-to-western-markets/

Chicago

Global Witness. Sanctions gap lets Russian-mined nickel flow to Western markets. n.d. https://globalwitness.org/en/campaigns/transition-minerals/sanctions-gap-lets-russian-mined-nickel-flow-to-western-markets/.

Wikipedia

{{cite report |author=Global Witness |title=Sanctions gap lets Russian-mined nickel flow to Western markets |url=https://globalwitness.org/en/campaigns/transition-minerals/sanctions-gap-lets-russian-mined-nickel-flow-to-western-markets/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalwitnessndsanctions, author = {{Global Witness}}, title = {{Sanctions gap lets Russian-mined nickel flow to Western markets}}, institution = {Global Witness}, url = {https://globalwitness.org/en/campaigns/transition-minerals/sanctions-gap-lets-russian-mined-nickel-flow-to-western-markets/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }