Norilsk-Nickel, which is not under western sanctions or hit by Russia’s financial crisis, is good business for the shareholders. The company’s CEO Vladimir Potanin says declining prices for nickel and copper cause lower revenues, but this is significantly compensated by ruble depreciation, the Moscow Times reports.
Potanin owns 30 percent of the company and is listed as Russia’s eighth richest person with a $12.6 billion fortune. Other shareholders are oligarchs like Oleg Deripaska and Roman Abramovich.
Norilsk-Nickel operates the smelters in Nikel and Monchegorsk as well as nickel mines in Zapolyarny on Russia’s Kola Peninsula. The largest factories, however, are in the far north tundra city of Norilsk in Siberia.
While Russia’s oil-dependent economy has been hit hard by falling oil-prices and Western sanctions, Norilsk-Nickel is enjoying the 50 percent drop in the ruble over the last few months. The company sales abroad and has its expenses in Russia. In other words; sell in dollar and pays in ruble.
Nickel price has fallen by more than 40 percent since May last year to $14,370 a ton, according to London Metal Exchange on Tuesday.
Last year, Norilsk-Nickel shares rose 50 percent in ruble terms, while slumping 14 percent in dollar terms last year, according to Bloomberg.
