Nornickel maintaining long-term investment plans, notes clients seeking to preserve contacts

MOSCOW. March 15 (Interfax) - Nornickel , despite abnormal developments in commodity markets and logistical disruptions in sales, is maintaining all long-term investment plans and is noting the desire from customers to maintain contracts.

"We are not changing our vision, our metals are still in demand for the economy of the future, for the transition to a green economy. [On the long-term horizon] we are continuing to implement all our investment plans," Sergey Dubovitsky, Senior Vice President Strategy, Strategic Projects, Logistics & Procurement, said during a call-in with Nornickel vice presidents.

"Our sales are continuing. We have confidence in our future. Our metals are in demand in the markets. None of our customers are looking to break contracts. Although we certainly see a number of logistical difficulties," Dubovitsky said. Having resolved the problem caused by the airline shutdown, Nornickel is working to resolve other logistics disruptions.

"Contracts are not being broken on the part of customers, deliveries continue," he said.

"In parallel, we have a plan B: alternative supply chains and reorientation of some volumes to other markets, including Asian markets, where we are quite firmly established on our feet. But this is still plan B, our key task is to preserve markets and traditional supply chains together with our clients," the executive said.

There are no direct sanctions against Nornickel now, but the company indicates that such risks have grown many times over. "Therefore, no scenario can be ruled out, including this [sanctions] scenario," Dubovitsky said.

Payments for Nornickel's products are proceeding as usual, Nornickel's CFO Sergey Malyshev said. "If any abnormal situations arise, we resolve them quite promptly. Such cases may occur due to general confusion, but they are not a systemic problem," he said.

The company has no plans to lay off staff, Larisa Zelkova, Senior Vice President and Head of Social Policy and Public Relations, said.

"Moreover, Nornickel is planning to hire new employees this year. We have a large investment program and a great need for qualified personnel. We are not planning any layoffs anywhere, at any of our sites. We will do our best to fully preserve our social package (in-house medical services, health resort treatments, housing programs)," Zelkova said.