Nornickel reported a sharp drop in metal production in the first quarter

Russia’s largest mining and metallurgical holding company, Norilsk Nickel, began 2026 with a significant decline in production of all key industrial metals. According to the company’s production report, nickel output fell by 28% in the first quarter compared to the previous quarter, platinum by 26%, palladium by 14%, and copper by 12%. On an annual basis, the decline in platinum and palladium production amounted to 26% and 18%, respectively.

The relevant data, published in the report of the company owned by billionaire Vladimir Potanin, was reported by Gazprombank analysts. 

Although the holding’s management attributes these results to a redistribution of volumes across quarters, experts describe the figures as negative. Nickel production has been declining for the third consecutive year due to restrictions on payments and a ban on imports of Western equipment.

New EU sanctions could pose an additional challenge for the company in 2026. As part of the 20th package of restrictions, a ban was imposed on any transactions involving the port of Murmansk, which serves as the main logistics hub for the company’s non-ferrous metal shipments. This poses critical risks to the export capabilities of the Russian industrial giant and its stability in the global market.

Russia is seeing a trend toward staff reductions across various sectors, including IT, healthcare, logistics, manufacturing, retail, consulting, and other business services.

The Russian Ministry of Finance forecasts a sharp increase in regional budget deficits to $21 billion.

Despite a temporary increase in oil export revenues, Russia’s economy continues to accumulate serious imbalances due to the war and high military spending. The budget deficit is growing rapidly, inflation is accelerating, and reserves are gradually being depleted. Analysts point out that oil revenues are only temporarily masking deeper problems. 

Russian authorities are planning massive layoffs of public sector employees amid a sharp rise in the government budget deficit. As of April 1, the number of employees recommended for dismissal reached 105,147. These figures are provided by Rostrud.