US Sanctions Russia’s Richest Tycoon, Nornickel Chief Potanin

--:--
The US sanctioned Vladimir Potanin, Russia’s richest tycoon and the president and biggest shareholder of mining giant MMC Norilsk Nickel PJSC, but left his company untouched as it tries to maintain stability in the metals market.
The action against Potanin on Thursday was part of a broader sanctions package the Treasury Department rolled out Thursday targeting some 40 people linked to Russia’s government. Also included was Rosbank, which Potanin acquired earlier this year, and a range of smaller entities.
“By sanctioning additional major Russian banks, we continue to deepen Russia’s isolation from global markets,” Treasury Undersecretary Brian Nelson said in a statement. “Today’s designations by the United States, together with actions taken by our international partners, will further inhibit the Putin regime’s ability to fund its horrific war against Ukraine.”
More than 40% of Potanin’s net worth — $30.4 billion according to Bloomberg Billionaires Index — comes from his stake in Nornickel, one of the world’s largest producers of nickel, palladium and copper. While the restrictions weren’t extended to Nornickel, they could prompt some buyers to shun Russian metal in a form of self-sanctioning.
The US action comes after the UK imposed sanctions on Potanin at the end of June. Before that, Potanin had largely avoided western sanctions that hit other members of the Russian elite. He has also been sanctioned by Canada and Australia.
Read: UK Sanctions Richest Russian, Sparking Metal Supply Fears
Potanin has headed Nornickel since striking a 2012 shareholder accord with United Co. Rusal International PJSC, the company’s second-largest investor. Potanin’s stake of just under 36% is held through his investment firm Interros Holding. It’s not clear if Potanin will step down.
The London Metal Exchange last month decided against a ban on new deliveries of Russian metal, after launching a formal discussion of the matter in October. Although the US and Europe have imposed sweeping sanctions on Russia in response to the invasion of Ukraine, the metals traded on the LME have largely avoided blanket restrictions.
Read: London Metal Exchange Decides Against Ban on Russian Metal
Since Russia’s invasion of Ukraine, Potanin has bought up some of Russia’s key privately owned banks, including buying Rosbank PJSC from Societe Generale SA. He also bought a stake in Tinkoff Bank from founder Oleg Tinkov, who said he was forced to sell after criticizing the war.
15 Dec 2022 10AM English South Africa Business News · Business

Other recent episodes

Pakistan pleads for flood relief after ‘cameras have gone’

Pakistan’s Foreign Minister Bilawal Bhutto Zardari urged the world to continue to help the South Asian nation recover from devastating floods ahead of a United Nations conference next month to mobilise funding. Pakistan is facing an economic crisis with reserves covering one month of imports, a dollar shortage and a…
19 Dec 2022 11PM 3 min

Yen surges on yield-curve change; Asia stocks fall: markets wrap

The yen strengthened as the Bank of Japan said it would let benchmark bond yields rise further. Asian equities headed for a fourth day of declines amid investors concern on the global inflation outlook. The BOJ kept policy rate unchanged, but increased the upper band limit on the yield target…
19 Dec 2022 11PM 2 min

What Led Twitter Users Into Voting Elon Musk Out: Timeline

After less than two months at the helm of Twitter Inc., Elon Musk asked his followers whether he should keep the job, pledging to abide by the result of the poll. They said he should step down. It’s the latest episode in a tumultuous series of events that’s played out…
19 Dec 2022 10AM 10 min

US Stocks Drop as Traders Mull Rate-Hike Path: Markets Wrap

US stocks dropped as traders mulled the Federal Reserve’s path next year after central bank officials vowed to keep raising rates until they’re confident inflation has been subdued. The S&P 500 and the tech-heavy Nasdaq 100 declined. Shares of Tesla Inc. gained in anticipation of Elon Musk stepping back from…
19 Dec 2022 10AM 4 min