Russia 'may buy metals' to boost mining companies

The Russian government is weighing up the possibility of buying metals in order to boost its flagging mining companies, a senior political figure in the country revealed yesterday (26th February). Norilsk Nickel, the world's top nickel producer, and Oleg Deripaska, the billionaire who controls United Co Rusal, originally proposed the purchase of nickel, aluminium, copper and other metals last year, Bloomberg reports. Now Arkady Dvorkovich, Economic Adviser to Russian President Dmitry Medvedev, explained that the viability of the strategy is being assessed to determine whether it is included in the next budget. In an interview with the news provider in Moscow, he said: "It's a perfectly good idea. If the budget has such opportunities, then it will be done. Whether there will be such opportunity is not yet clear." Mr Dvorkovich added that the budget - which may reach a deficit of eight per cent of GDP this year, according to the Economy Ministry - will be primarily focused on tackling inflation and stimulating the economy. He also revealed that some of Russia's largest mining firms will meet this week to discuss prior proposals, although he emphasised that the government has not received any new merger plans. The news comes after Vladimir Potanin, the main investor in Norilsk, claimed last month that the government should aim to push mergers with companies such as steel producers Evraz Group SA and OAO Mechel. ——www.platinum.matthey.com