The Kremlin Refocuses on the Metals Industry

Rumors have resurfaced that the Kremlin is revisiting the possibility of consolidating Russia's metals companies. Though it is known for its massive energy sector, Russia is the world's largest producer of aluminum, platinum, nickel and other precious metals and the fourth-largest producer of steel. The seven large firms that control most of Russia's metals and mining operations (Norilsk Nickel, Rusal, Metalloinvest, Evraz, Severstal, Novolipetsk Steel and Mechel) have long held onto a delicate form of their independence from the Kremlin, unlike companies in other major industries — energy and military industrial complexes, for instance. But it appears the Kremlin may have finally decided to take advantage of the opening presented by a long-standing feud between two of the most important oligarchs in the metals industry over the coveted Norilsk Nickel.

Russian President Vladimir Putin said Aug. 20 during a meeting of mining industry representatives that the dispute between Vladimir Potanin and Oleg Deripaska over Norilsk Nickel would be "resolved." The comment came as a surprise because the Kremlin has stayed out of the feud for years. Now rumors are rampant in Russia that the Kremlin may finally make a move in the metals industry — something that could reinvigorate infighting among many of Russia's still-powerful oligarchs.