Russia is a significant cobalt producer, with production primarily from Nornickel (Norilsk Nickel) operations in the Norilsk-Talnakh region of Siberia. Russia accounted for approximately 4–5% of global cobalt production before 2022. Following Russia's invasion of Ukraine in February 2022, cobalt sourcing from Russia has become subject to significant sanctions risk and reputational concerns.
Sanctions Risk
While cobalt itself is not subject to direct sanctions from the EU, US, or UK, Nornickel and its associated entities may be subject to secondary sanctions risk. The EU has imposed sanctions on Russian oligarchs and entities with connections to Nornickel's ownership structure. US companies must screen Russian cobalt suppliers against OFAC's SDN list and conduct enhanced due diligence on ownership structures.
LME Responsible Sourcing
Nornickel's cobalt brands remain LME-listed and passported, but several major battery manufacturers and automotive OEMs have announced policies to reduce or eliminate Russian cobalt from their supply chains in response to the Ukraine conflict. This has contributed to a structural shift in cobalt supply chains toward Australian, Philippine, and DRC industrial mining sources.
Norilsk Nickel Environmental Record
Nornickel has a significant environmental compliance record, including a major diesel spill in 2020 that released 21,000 tonnes of diesel fuel into the Ambarnaya River. The company has committed to significant environmental remediation investments, but environmental risk remains a factor in responsible sourcing assessments.