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The EU is using Russian nickel for the defense industry

The EU is using Russian nickel for the defense industry
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The European Union continues to use Russian nickel for the defense industry despite calls to tighten sanctions against Russia, according to Yle.

Members of the Finnish European Parliament have stated that Russian nickel remains a key raw material for producing components and stainless steel, as well as for transitioning to a “green” economy, including batteries for electric vehicles and wind turbines. Merja Kyllönen noted that Russian nickel is specifically used for defense purposes, while the EU seeks to end Russia’s military actions in Ukraine and limit the functioning of its military economy.

Kyllönen emphasized that the situation is highly unstable from an ethical perspective, as Russia’s military industry is strengthened through the sale of raw materials. At the same time, banning Russian nickel would raise global prices and threaten jobs in the defense sector. MEPs Katri Kulmuni and Pekka Toveri share this view, pointing out that it is currently impossible to quickly replace Russian nickel, and that the metal is critically important for EU defense manufacturing.

In 2024, the EU purchased about $1 billion worth of Russian nickel, and $300 million in the first quarter of 2025. Although volumes have decreased compared to peak years, almost a quarter of the nickel the EU requires still comes from Russia. The EU produces only about 3% of the world’s refined nickel.

"Of course, Russian nickel also matters for the automotive and steel industries, but I would say that the defense industry is certainly the most critical," Kulmuni notes.

Finland plays a special role in supplying Russian nickel to Europe: Russian ore is transported to the Nornickel Harjavalta plant for processing, producing around 65% of refined nickel. MEPs highlight that through intermediaries, Russian nickel also enters the Finnish defense industry, where it is used to manufacture weapons and components for tracked vehicles and fighter jets.

Finnish companies Patria Group and the PIA association stated that they do not comment on the use of Russian nickel at the EU level, with PIA specifying that its members do not use Russian-origin raw materials. The European Commission and major defense manufacturers, such as Rheinmetall, BAE Systems, Leonardo, and Saab, also remain silent on the issue.

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