(Bloomberg) -- Russian President Vladimir Putin asked the government to consider if it makes sense to limit exports of some commodities like nickel, titanium and uranium in retaliation for western sanctions.
“Russia is the leader in strategic raw materials reserves like uranium, titanium, nickel,” Putin said during the meeting with the government, shown on TV. Since western sanctions limit exports of some Russian commodities like diamonds, “maybe we should also think about restrictions,” he said. Such limits should not harm Russia, he said.
The US and the European Union have imposed multiple sanctions on Russia’s economy, including on some metals and mining companies, since Moscow’s full scale invasion of Ukraine in 2022. Still, many commodities including palladium aren’t subject to major restrictions and continue to be shipped to western markets.
While the London Metal Exchange in April banned delivery of new Russian nickel and aluminum following sanctions imposed by the US and UK, Russia sells most of its output to end users. The US this year also banned imports of Russian uranium and newly produced nickel, copper and aluminum.
“I am not saying that this needs to be done tomorrow, but we could think about certain restrictions on supplies to the foreign market not only of the goods I mentioned, but also of some others,” Putin said.
Russia’s MMC Norilsk Nickel PJSC, which isn’t subject to US or UK sanctions, is the world’s biggest producer of refined nickel. VSMPO-Avisma PJSC is one of the largest producers of titanium, used in aviation industry.
The nation is also the world’s top exporter of nuclear fuel and technology. In addition to uranium-mining assets in Russia and Kazakhstan, the Kremlin-controlled nuclear giant Rosatom Corp. controls almost half the global enrichment capacity needed to convert the ore into energy.
Norilsk Nickel’s press service and Rosatom declined to comment on Putin’s statement. VSMPO-Avisma didn’t immediately reply to requests for comment.
Russia exports a significant part of its nickel, titanium and uranium output.
Nickel on the London Metal Exchange jumped following Putin’s remarks, climbing as much as 2.6%.
--With assistance from Jonathan Tirone.
(Adds details on the US sanctions in the fourth paragraph. An earlier version corrected the line on commodities that are not subject to restrictions in the third paragraph.)
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