Palladium Export Ban: How Russia Can Respond to Western Sanctions

February 28 2022 20

White House officials are urging American microelectronics manufacturers to seek a replacement for Russia as a supplier of palladium, neon and other materials needed to make chips.

The "trouble" was caused by a recent report from the research company Techcet. It says that the US semiconductor industry is currently heavily dependent on Russia.

It is worth noting that the Americans sound the alarm is not in vain. The thing is that 45% of the world's palladium consumption is provided by our country. Moreover, the largest reserves of this noble metal are located in Russia. At the same time, many of our deposits remain untouched today.

In fact, based on the Techcet report, our country is the largest exporter of not only the aforementioned noble metal, but also neon, which is also necessary for the production of microelectronics. Russia controls about 90% of this gas supply.

The most regrettable thing for the United States in this situation is that there is no one to replace our country in this market today. Thus, before imposing a ban on the supply of their iPhones to Russia, Americans should think carefully. After all, it may turn out that they simply cannot produce them.

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Valera75

+1

28 February 2022 14: 04

The author’s dreams, mine and I think many coincide with what is written. But so far there is nothing even close in practice. I strongly hope that ours have thought everything through and calculated in advance and there are very tough responses to sanctions, otherwise I don’t see the point in everything that our government brewed.
1. gunnerminer
  
  -8
  
  28 February 2022 15: 40
  
  I really hope that our people have thought everything through and calculated in advance and there are very tough responses to sanctions, otherwise I don’t see the point in everything that our government has brewed.
  
  We calculated the operation, and placed the gold reserves in NATO countries, in Japan. Suvorovs. And before that, the Land Forces and military educational institutions were drastically reduced.
Alexey Davydov

+3

28 February 2022 14: 09

Saxons will finish their stupidity and senseless hatred
Roma Phil

+5

28 February 2022 14: 34

I have been writing about this since 2014. The ban on palladium exports to Western countries is a powerful pressure on the economies of Europe and the American satellites.
And most importantly, this will affect the flow of foreign currency into the country much less than when selling oil and gas.
And only two countries export palladium: South Africa and Russia. All South African palladium goes to the US and Japan, while Russian palladium goes to Western countries and China.
And the main value of this metal is not only in the production of microelectronics, but in the automotive industry. . The platinum group metals, platinum-palladium-rhodium, are included in engine catalysts. These metals are everywhere in the car. In relay sockets and thermostats; fuel level sensors; , voltage regulators; car ignition systems. And that is not all . There are many of these metals in the car.
And if Russia does not supply these metals to the West, not one car will leave the car factory.
Bakht

0

28 February 2022 15: 03

There are many positions for which it is necessary to introduce an export ban.
No will to do it
1. 123
  
  +2
  
  1 March 2022 08: 20
  
  There are many positions for which it is necessary to introduce an export ban.
  No will to do it
  
  Everything has its time. It looks like it's about finances.
  Here, if a curious decree came out, pay attention to points 3 and 6, they are most interesting
  http://kremlin.ru/events/president/news/67881
  1. Bakht
    
    +3
    
    1 March 2022 09: 13
    
    This Decree is mainly directed against the withdrawal of capital. The West will lose from 50 to 100 billion dollars a year.
    The second piece of news is that the Central Bank of Russia has stopped selling gold to the West. Over the past two years, up to 500 tons of gold have been taken to London. And all this money is now blocked. Matvienko preoccupied herself with the question of who allowed this. And the fact that for two years everyone wrote about this, she does not know.
    Today we are waiting for what specific sanctions will be introduced. If the situation worsens, then at least all export operations are expected to be converted into rubles, or a complete rejection of exports is expected.
    
    These are elementary things. If Russia was banned from using dollars, euros (in general, any Western currency), then there is no point in selling goods. All the same, nothing can be bought with this foreign exchange earnings. Therefore, moaning that Russia will lose a third or a half of foreign exchange earnings is a conversation about nothing. If the country does not sell goods, then the currency is not needed.
    The West shot itself in the head. Russia did not ban dollars. This ban was introduced by the West. They just have to be left without goods. Today, I see a mandatory transfer of trade in oil, gas, metal to the ruble basis. No rubles or desire - no product.
    1. 123
      
      +2
      
      1 March 2022 10: 43
      
      This Decree is mainly directed against the withdrawal of capital. The West will lose from 50 to 100 billion dollars a year.
      
      Generally yes It's difficult to say how much they will lose per year, the very wording "per year" in my opinion is not entirely correct. Looking at the situation more broadly, they introduced a ban on the sale of securities. This is about 80% of the shares in free float on the stock market. This money is also essentially blocked.
      
      The second piece of news is that the Central Bank of Russia has stopped selling gold to the West. Over the past two years, up to 500 tons of gold have been taken to London. And all this money is now blocked. Matvienko preoccupied herself with the question of who allowed this. And the fact that for two years everyone wrote about this, she does not know.
      
      Exactly recent years began to sell gold. For what reasons this was done, I find it difficult to say. They seemed to be conducting an investigation there ... it would be interesting to get acquainted with the results. Probably, in the light of current events, the version that this is banal corruption or the Central Bank is acting stupidly at the behest of the Fed is not the most promising.
      As options I can assume that it was:
      - compensation for shortfalls in income from a decrease in the volume of hydrocarbon exports;
      - an attempt to divide the US, Europe and Britain, playing along with the British;
      - "financial Serdyukovism", by analogy with the reform of the army, up to a certain point they pretended that everything was crumbling and being pulled apart, so they delayed the moment of aggravation.
      It is possible that a combination of several of these tasks took place.
      Now the cessation of the sale of gold is synchronized with the blocking of assets and the withdrawal of capital. In fact, this is a blow to globalization, the termination of the payment of the "colonial tax".
      If the aggravation continues and intensifies, the segmentation of the world economy will accelerate.
      Trade stops, which means that transit to enemies is not so attractive. You mean you will trade through us, and we look stupid? The Silk Road is under threat. The position of China is important, it is curious how it will behave, what agreements there are on this matter.
      It looks like this is a battle for Europe, she is the Elena of our days, the European Union Troy and the main prize. And Ukraine is just a poor washerwoman, she was on the road under her feet and they kicked her along with the trough.
      
      The West shot itself in the head. Russia did not ban dollars. This ban was introduced by the West. They just have to be left without goods. Today, I see a mandatory transfer of trade in oil, gas, metal to the ruble basis. No rubles or desire - no product.
      
      Undoubtedly But Americans are pragmatic people. They introduce all sorts of restrictions not on emotions, and only at the moment when there is still some result from their actions, and if they are delayed with the adoption of measures, then they will be useless. Apparently they understand that everything was going to this, the result would be the same. They are just trying to slow down the process.
      1. Bakht
        
        +1
        
        1 March 2022 15: 01
        
        The states have already proposed easing sanctions in response to the "de-escalation of the conflict." What they mean by this term - only they know. But it is already clear that the losses will be huge. Sanctions completely destroy the "globalization" project. And it was the Democrats who promoted this project.
        Putin suggested that the "oligarchy" of Russia give 80% of the profits to the state. It's a whip. Gingerbread is that 20% will remain. The oligarchy has not yet accepted the proposal of the State. So much the worse for them.
        
        123
        
        +1
        
        1 March 2022 16: 04
        
        The states have already proposed easing sanctions in response to the "de-escalation of the conflict." What they mean by this term - only they know.
        
        Probably the definition will be "floating" and change depending on the situation.
        
        But it is already clear that the losses will be huge. Sanctions completely destroy the "globalization" project. And it was the Democrats who promoted this project.
        
        First of all, this is a loss of reputation for them. Another oil painting for the gifted who did not understand anything after Afghanistan. The whole world is watching what "the whole civilized world is with us" and "Omeriga will help us" mean. Who will take them seriously?
        And the global project is already falling apart, it's just that the rift is more noticeable.
        
        Putin suggested that the "oligarchy" of Russia give 80% of the profits to the state. It's a whip. Gingerbread is that 20% will remain. The oligarchy has not yet accepted the proposal of the State. So much the worse for them.
        
        In fact, the conditions are softer, 80% is not for the state, but simply remains inside the country, flows into the economy.
        They don't really have much of a choice. Dump with what you already have and lose business or stay.
        
        Bakht
        
        0
        
        1 March 2022 16: 20
        
        First of all, this is a loss of reputation for them.
        
        First of all, these are economic losses. The reputation has been lost for a long time.
        
        In fact, the conditions are softer, 80% is not for the state, but simply remains inside the country, flows into the economy.
        
        First of all, give away 80% of the business. As long as it's for the money. For rubles.
        
        The authorities are going to spend up to 1 trillion rubles from the NWF on the shares of Russian companies
        
        https://www.forbes.ru/finansy/457531-vlasti-sobirautsa-potratit-na-akcii-rossijskih-kompanij-do-1-trln-rublej-iz-fnb
        
        123
        
        +1
        
        1 March 2022 17: 08
        
        First of all, give away 80% of the business. As long as it's for the money. For rubles.
        
        The authorities are going to spend up to 1 trillion rubles from the NWF on the shares of Russian companies
        
        So it's not taken away from the owners.
        When the crisis began, the US and the EU began to print money in wagons and pump up capitalization. Accordingly, the collapse in share prices did not happen, nothing happened to buy from them on the cheap. Gentlemen have changed the rules
        Since the interpenetration of capital does not work, they print and buy shares of Russian companies and receive profit from them, but nothing can be bought from them, they were shown a fig. Shares have fallen in price, those that are in free float are bought by the state. It's better than storing money in funds.
        Although ... if the owners sell, they will also be bought up. Why not? Those investments, the state part of the profits. This is not taken away in my opinion. But the share of the state in the economy is growing.
        
        Bakht
        
        0
        
        1 March 2022 17: 23
        
        It's not entirely clear what you're talking about. Shares are bought from Russian issuers. That is, Russian companies. For rubles. Not for dollars. Moreover, the West itself banned the sale for dollars.
        Any transactions with Russian securities are prohibited by the West. Yes, and payments to non-residents are prohibited by yesterday's Decree of Putin. And why would non-residents of Russia sell their shares for rubles? What should they do with the rubles?
        Here is the text and screenshot of the Order.
        
        http://publication.pravo.gov.ru/Document/View/0001202203010014
        
        Paragraph one "on the terms determined by the Ministry of Finance of Russia."
        Item two "state state corporation VEB RF".
        The shares are under the control of the state.
        
        In my opinion, a mild version of nationalization is taking place. Those who resist will get a tough option.
        
        123
        
        +1
        
        1 March 2022 18: 31
        
        It's not entirely clear what you're talking about. Shares are bought from Russian issuers. That is, Russian companies. For rubles. Not for dollars.
        
        Looks like you are right I just didn’t get it, I understood, so they will buy it later, when the auction starts.
        
        Moreover, the West itself banned the sale for dollars.
        Any transactions with Russian securities are prohibited by the West.
        
        Do you mean that they froze the shares of Russian companies on their stock exchanges?
        Or are payments in dollars not allowed at all?
        
        In my opinion, a mild version of nationalization is taking place. Those who resist will get a tough option.
        
        Yes but it is very soft. The share of the state is growing. But they are not forced to sell. In my opinion, they just buy cheaper ones.
        
        Bakht
        
        +1
        
        1 March 2022 19: 45
        
        For Western owners, the shares are frozen. But they are not bought. According to yesterday's presidential decree, the payment of dividends to the West is prohibited. And transactions with Russian securities are prohibited by the West itself. Today there was an explanation that Russia does not want to lose Western investments and hopes that after the lifting of sanctions, non-residents will be able to receive their dividends.
        But Russian issuers (that is, companies that issue securities, including shares) were offered to sell them to the state-owned company VEB.RF.
        When they write "on the terms proposed by the Ministry of Finance of the Russian Federation", this means that "an offer that cannot be refused" will be made. Regardless of their price on the exchange, they will give as much as the Ministry of Finance decides. In rubles.
        Therefore, many oligarchs are now in the camp of the opposition. Their property in the West was frozen (or even confiscated), their "golden passports" were canceled, and in Russia their shares will be bid in rubles, which they will not be able to convert into dollars. And even more so, they will not be able to take it offshore. Everything that is acquired by overwork can burn. Rather return to state property
        The danger to Russia now is not the Armed Forces of Ukraine, and not even NATO. The danger comes from the liberal bloc in the Russian government. Anyone who disagrees must be cleared. And without any sentimentality. Compromise on everyone is available in abundance. There are no white and fluffy ones.
        
        I really hope that this will be the case. The time for consensus and compromise is over.
        
        123
        
        +1
        
        1 March 2022 19: 48
        
        You described not a bad option Let's see what comes out
        
        Bakht
        
        +1
        
        1 March 2022 19: 50
Bloshka

+2

28 February 2022 17: 10

If we think that all this mess is spontaneous, then we are greatly mistaken. All these telephone conversations between the main ones have already discussed the risks and consequences. This is a show in which Ukraine is the main victim, it is a bargaining chip in the game of big uncles. Haven't US analysts calculated the risks for their markets? Yes, Russia will pay a high price for leaving the gentlemen's club, but the bonus in this game will be freedom. Geopolitical. But only if we win and hold out, then the rest of the countries oppressed by the United States can recognize us as a leader, but then more global problems can begin. GDP will leave, but will those who come after it be able to pull the burden.
Cherry

0

28 February 2022 18: 47

Also sapphire glass.
Colonel Kudasov

+1

28 February 2022 21: 31

Palladium is indispensable in the future "hydrogen energy" because of its unique ability to absorb hydrogen.