for the years ended 31 December 2025, 2024 and 2023
Statement of management’s responsibilities for the preparation and approval of the disclosed consolidated financial statements for the years ended 31 december 2025, 2024 and 2023
The following statement, which should be read in conjunction with the auditors’ responsibility stated in the independent auditors’ report, is made with a view to distinguishing the respective responsibilities of management and those of the auditors in relation to the disclosed consolidated financial statements of Public Joint Stock Company “Mining and Metallurgical Company “Norilsk Nickel” and its subsidiaries (the “Group”).
Management of the Group is responsible for the preparation of the disclosed consolidated financial statements in accordance with the principles stated in Note 2.
In preparing the disclosed consolidated financial statements, management is responsible for:
selecting suitable accounting principles and applying them consistently;
making judgements and estimates that are reasonable and prudent;
preparing the disclosed consolidated financial statements on a going concern basis, unless it is inappropriate to presume that the Group will continue in business for the foreseeable future.
Management, within its competencies, is also responsible for:
designing, implementing and maintaining an effective system of internal controls throughout the Group;
maintaining statutory accounting records in compliance with local legislation and accounting standards in the respective jurisdictions in which the Group operates;
taking steps to safeguard the assets of the Group;
and detecting and preventing fraud and other irregularities.
The Group`s disclosed consolidated financial statements for the years ended 31 December 2025, 2024 and 2023 were approved by:
President
V.O. Potanin
First Vice President —
Chief Financial Officer
S.G. Malyshev
Moscow, Russia 11 February 2026
Independent Auditors’ Report
For the full text of the Independent Auditor’s Report, please refer to the following link.
Disclosed consolidated income statement for the years ended 31 december 2025, 2024 and 2023
US Dollars million
Notes
For the year ended 31 December
2023
2024
2025
Notes
For the year ended 31 December
2023
2024
2025
Revenue
Metal sales
7
13,702
11,848
12,983
Other sales
707
687
780
Total revenue
14,409
12,535
13,763
Cost of metal sales
8
(6,344)
(6,221)
(6,920)
Cost of other sales
(688)
(656)
(693)
Gross profit
7,377
5,658
6,150
General and administrative expenses
9
(1,093)
(1,046)
(1,241)
Selling and distribution expenses
10
(296)
(419)
(319)
Impairment of non‑financial assets, net
14
(179)
(441)
(319)
Other operating expenses, net
11
(269)
(178)
(333)
Operating profit
5,540
3,574
3,938
Foreign exchange gain/(loss), net
(1,512)
(343)
78
Finance costs, net
12
(567)
(896)
(934)
Gain on disposal of subsidiaries, joint ventures, joint operations and associates
21
32
–
33
Income from investments, net
41
69
171
Profit before tax
3,534
2,404
3,286
Income tax expense
13
(664)
(589)
(816)
Profit for the year
2,870
1,815
2,470
Attributable to:
Shareholders of the parent company
2,384
1,313
1,947
Non‑controlling interests
486
502
523
2,870
1,815
2,470
EARNINGS PER SHARE
Basic and diluted earnings per share attributable to shareholders of the parent company (US Dollars per share)
22
0.156
0.086
0.127
The accompanying notes form an integral part of the disclosed consolidated financial statements
Disclosed consolidated statement of comprehensive income for the years ended 31 december 2025, 2024 and 2023
US Dollars million
For the year ended 31 December
2023
2024
2025
For the year ended 31 December
2023
2024
2025
Profit for the year
2,870
(1,016)
2,470
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss:
Effect of translation of foreign operations and other reserves
(31)
(4)
(6)
Items that will not be reclassified subsequently to profit or loss:
Effect of translation to presentation currency
(1,825)
(1,016)
2,496
Other comprehensive income/(loss) for the year
(1,856)
(1,020)
2,490
Total comprehensive income for the year
1,014
795
4,960
Attributable to:
Shareholders of the parent company
779
480
4,050
Non‑controlling interests
235
315
910
1,014
795
4,960
The accompanying notes form an integral part of the disclosed consolidated financial statements
Disclosed consolidated statement of financial position at 31 december 2025, 2024 and 2023
US Dollars million
Notes
At 31 December
2023
2024
2025
Notes
At 31 December
2023
2024
2025
Assets
Non‑current assets
Property, plant and equipment
14
15,181
15,261
22,091
Intangible assets
238
206
280
Investments in associates and joint ventures
16
76
181
351
Other financial assets
58
57
47
Deferred tax assets
13
335
328
388
Other non‑current assets
18
350
292
367
16,238
16,325
23,524
Current assets
Inventories
18
3,817
3,114
3,894
Trade and other receivables
19
764
1,374
1,152
Advances paid and prepaid expenses
173
135
115
Other financial assets
3
69
7
Income tax receivable
17
101
38
17
Other taxes receivable
17
344
292
440
Cash and cash equivalents
20
2,139
1,822
2,106
Other current assets
1
1
1
7,342
6,845
7,732
Total assets
23,580
23,170
31,256
Equity and liabilities
Capital and reserves
Share capital
22
6
6
6
Share premium
1,212
1,212
1,212
Translation and other reserves
(6,146)
(6,979)
(4,876)
Retained earnings
11,324
12,638
14,974
Equity attributable to shareholders of the parent company
6,396
6,877
11,316
Non‑controlling interests
23
1,199
1,220
2,129
7,595
8,097
13,445
Non‑current liabilities
Loans and borrowings
24
5,377
7,112
7,587
Lease liabilities
25
466
381
401
Provisions
26
689
881
1,576
Social liabilities
27
375
283
456
Trade and other long‑term payables
51
41
62
Deferred tax liabilities
13
142
381
953
Other non‑current liabilities
54
75
145
7,154
9,154
11,180
Current liabilities
Loans and borrowings
24
4,335
2,834
3,109
Lease liabilities
25
54
81
147
Trade and other payables
28
1,273
1,209
1,669
Dividends payable
22
1,924
721
239
Employee benefit obligations
555
444
674
Provisions
26
90
173
196
Social liabilities
27
207
164
199
Derivative financial instruments
114
–
–
Income tax payable
17
7
49
59
Other taxes payable
17
272
244
339
8,831
5,919
6,631
Total liabilities
15,985
15,073
17,811
Total equity and liabilities
23,580
23,170
31,256
The accompanying notes form an integral part of the disclosed consolidated financial statements
Disclosed consolidated statement of cash flows for the years ended 31 december 2025, 2024 and 2023
US Dollars million
Notes
For the year ended 31 December
2023
2024
2025
Notes
For the year ended 31 December
2023
2024
2025
Operating activities
Profit before tax
3,534
2,404
3,286
Adjustments for:
Depreciation and amortisation
1,165
1,181
1,411
Impairment of non‑financial assets, net
14
179
441
319
Loss on disposal of property, plant and equipment and intangible assets
11
36
36
67
Gain on disposal of subsidiaries, joint operations, joint ventures and associates
21
(32)
–
(33)
Change in provisions and allowances
26, 27
77
45
174
Finance costs, net
12
567
896
934
Income from investments, net
(41)
(69)
(171)
Foreign exchange (gain)/loss, net
1,512
343
(78)
Other
124
(2)
(27)
7,121
5,275
5,882
Movements in working capital:
Inventories
(185)
190
56
Trade and other receivables
(4)
(610)
313
Advances paid and prepaid expenses
(62)
34
73
Other taxes receivable
12
3
(45)
Employee benefit obligations
39
(10)
85
Trade and other payables
51
(34)
173
Provisions and social liabilities
(179)
(181)
(197)
Other taxes payable
99
104
31
Cash generated from operations
6,892
4,771
6,371
Income tax paid
(1,164)
(338)
(353)
Net cash generated from operating activities
5,728
4,433
6,018
Investing activities
Purchase of property, plant and equipment
14
(2,988)
(2,386)
(2,569)
Investments in associates and joint ventures
16
(71)
(131)
(128)
Purchase of intangible assets
(50)
(52)
(59)
Loans issued
(31)
(6)
(2)
Proceeds from repayment of loans issued
38
9
4
Net change in deposits placed
–
(29)
28
Disposals of subsidiaries, joint operations, joint ventures and associates
21
11
–
(33)
Interest received
36
80
182
Other investing cashflows
13
(60)
45
Net cash used in investing activities
(3,042)
(2,575)
(2,532)
Financing activities
Proceeds from loans and borrowings
34
5,569
7,273
12,598
Repayments of loans and borrowings
34
(6,642)
(6,229)
(13,820)
Payments of lease liabilities
34
(45)
(55)
(75)
Dividends paid to shareholders of the parent company
–
(1,480)
(20)
Dividends paid to non‑controlling interests
23
(503)
–
(230)
Receipt of dividends not remitted to shareholders
22
–
16
–
(Payments)/proceeds on exchange of flows under cross‑currency interest rate swaps, net
34
8
(99)
–
Interest paid
(791)
(1,468)
(1,700)
Net cash used in financing activities
(2,404)
(2,042)
(3,247)
Net change in cash and cash equivalents
282
(184)
239
Cash and cash equivalents at the beginning of the year
20
1,882
2,139
1,822
Effects of foreign exchange differences on balances of cash and cash equivalents
(25)
(133)
45
Cash and cash equivalents at the end of the year
20
2,139
1,822
2,106
The accompanying notes form an integral part of the disclosed consolidated financial statements
Disclosed consolidated statement of changes in equity for the years ended 31 december 2025, 2024 and 2023
US Dollars million
Notes
Equity attributable to shareholders of the parent company
Share capital
Share premium
Translation and other reserves
Retained earnings
Total
Non‑ controlling interests
Total
Notes
Equity attributable to shareholders of the parent company
Share capital
Share premium
Translation and other reserves
Retained earnings
Total
Non‑ controlling interests
Total
Balance at 1 January 2023
6
1,212
(4,541)
10,448
7,125
1,442
8,567
Profit for the year
–
–
–
2,384
2,384
486
2,870
Other comprehensive loss
–
–
(1,605)
–
(1,605)
(251)
(1,856)
Total comprehensive income for the year
–
–
(1,605)
2,384
779
235
1,014
Dividends
22
–
–
–
(1,508)
(1,508)
(478)
(1,986)
Balance at 31 December 2023
6
1,212
(6,146)
11,324
6,396
1,199
7,595
Profit for the year
–
–
–
1,313
1,313
502
1,815
Other comprehensive loss
–
–
(833)
–
(833)
(187)
(1,020)
Total comprehensive income for the year
–
–
(833)
1,313
480
315
795
Dividends
22
–
–
–
–
–
(295)
(295)
Other effects related to non‑controlling interest
–
–
–
1
1
1
2
Balance at 31 December 2024
6
1,212
(6,979)
12,638
6,877
1,220
8,097
Profit for the year
–
–
–
1,947
1,947
523
2,470
Other comprehensive income
–
–
2,103
–
2,103
387
2,490
Total comprehensive income for the year
–
–
2,103
1,947
4,050
910
4,960
Dividends
22
–
–
–
–
–
(2)
(2)
Recovery of unclaimed dividends
22
–
–
–
390
390
–
390
Other effects related to non‑controlling interest
–
–
–
(1)
(1)
1
–
Balance at 31 December 2025
6
1,212
(4,876)
14,974
11,316
2,129
13,445
The accompanying notes form an integral part of the disclosed consolidated financial statements
Notes to the disclosed consolidated financial statements for the years ended 31 december 2025, 2024 and 2023
1. General information
Organisation and principal business activities
Public Joint Stock Company “Mining and Metallurgical Company “Norilsk Nickel” (the “Company” or PJSC “MMC “Norilsk Nickel”) was incorporated in the Russian Federation on 4 July 1997. The principal activities of the Company and its subsidiaries (the “Group”) are exploration, extraction, refining of ore and nonmetallic minerals and sale of base and precious metals produced from ore.
Major production facilities of the Group are located on Russia’s Taimyr and Kola Peninsulas and in the Zabaikalsky Territory.
2. Basis of preparation
The disclosed consolidated financial statements have been prepared by the management of the Group based on the Group’s audited consolidated financial statements for the years ended 31 December 2025, 31 December 2024 and 31 December 2023 prepared in accordance with International Financial Reporting Standards (“IFRS”) by aggregating information, which in case of disclosure could cause damage to the Group and (or) its counterparties.
The audited consolidated financial statements for the years ended 31 December 2025, 31 December 2024 and 31 December 2023, are available at the registered office of PJSC “MMC “Norilsk Nickel” and could be provided subject to the requirements of Russian legislation.
The decision on preparation of the disclosed consolidated financial statements has been taken by the management of the Group in accordance with the Resolution of the Government of the Russian Federation № 1102 dated 4 July 2023 “On the specifics of disclosure and (or) presentation of information subject to disclosure and (or) presentation in accordance with the requirements of the Federal Law “On joint stock companies” and the Federal Law “On the securities market” (hereinafter – “Resolution № 1102 dated 4 July 2023”).
The disclosed consolidated financial statements do not contain all the information required to be disclosed in the full set of the consolidated financial statements in accordance with IFRS, and in particular:
information on segment operations, including segment metal sales is abridged;
information on metal sales by geographical location of external customers is presented aggregately;
information on investments in significant subsidiaries is presented without specifying the names and jurisdictions of subsidiaries;
information on investments in joint ventures is presented aggregately.
The disclosed consolidated financial statements have been prepared for the purpose of presenting the disclosed consolidated financial position and disclosed consolidated financial results of the Group, disclosure of which will not cause damage to the Group and (or) its counterparties. Therefore, these disclosed consolidated financial statements may be not suited for another purpose.
Further on, references to the consolidated financial statements and their components are meant to indicate the disclosed consolidated financial statements and their components.
The consolidated financial statements of the Group are prepared on the historical cost basis, except for mark‑to‑market valuation of certain classes of financial instruments, in accordance with IFRS 9 Financial Instruments.
3. Changes in accounting policies
The accounting policies applied in the preparation of the consolidated financial statements for the year ended 31 December 2025 are generally consistent with those applied in the preparation of the Group’s consolidated financial statements as at and for the years ended 31 December 2024 and 2023.
New and revised standards and interpretations
Summary of amendments
New and revised standards and interpretations
Summary of amendments
Adopted by the Group for the reporting periods beginning on 1 January 2023
Amendments to IAS 1 Presentation of Financial Statements
Amendment of the criteria for classification of liabilities as current or non‑current
Amendments to IAS 8 Accounting Policies
The requirement to disclose only material accounting policies
Amendments to IAS 12 Income Taxes
Clarification for deferred tax accounting where deductible and taxable temporary differences arise in equal amounts on initial recognition
IFRS 17 Insurance contracts
New principles of recognition, assessment, presentation and disclosure of insurance contracts
Adopted by the Group for the reporting periods beginning on 1 January 2024
Amendments to IAS 1 “Presentation of Financial Statements”
Clarification on classification of liabilities as current or non‑current and new disclosure requirements for non‑current liabilities with future covenants
Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures”
Additional disclosure requirements for companies that enter into supplier finance arrangements
Amendments to IFRS 16 “Leases”
Clarification on sale and leaseback accounting for a seller‑lessee
Adopted by the Group for the reporting periods beginning on 1 January 2025
Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates”
Сlarification on how to determine whether a currency is exchangeable into another currency, and the spot exchange rate to use when it is not
Adoption of the new standards and amendments to the standards did not have material impact on the accounting policies, financial position or financial results of the Group except for IFRS 7 Financial Instruments: Disclosures (amended) and IAS 7 Statement of Cash Flows (amended) (refer to Note 4 “Material accounting policies – Supply chain finance” and Note 28).
Relevant standards, interpretations and amendments
Summary of amendments
Effective for periods beginning on or after
Relevant standards, interpretations and amendments
Summary of amendments
Effective for periods beginning on or after
New IFRS standards
IFRS 18 Presentation and Disclosure in Financial Statements
The new standard supersedes IAS 1 Presentation of Financial Statements
1 January 2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures
The new standard allows reduced disclosure in individual IFRS statements of subsidiaries without public accountability
1 January 2027
Amendments to IFRS standards and interpretations
IFRS 7 Financial Instruments: Disclosures
Additional disclosure requirements for investments in equity instruments measured at fair value through other comprehensive income;
Disclosures of the gain or loss on derecognition of financial assets;
аnd other amendments.
1 January 2026
Guidance on implementing IFRS 7 Financial Instruments: Disclosures
Disclosure of deferred difference between fair value and transaction price, credit risk disclosures and bringing disclosure requirements in accordance with IFRS 9 and IFRS 13.
1 January 2026
IFRS 9 Financial Instruments
Derecognition of the financial liability in case of settlements via electronic payment systems;
Amendments to the derecognition of lease liabilities;
Amendment to the trade receivables measurement at initial recognition at the amount determined by applying IFRS 15 if the trade receivables do not contain a significant financing component;
аnd other amendments.
1 January 2026
IFRS 10 Consolidated Financial Statements
Amendment to the determination of a ‘de facto agent’.
1 January 2026
IAS 7 Statement of Cash Flows
Amendment to referencing accounting at cost when describing cash flows from subsidiaries, associates, and joint ventures.
1 January 2026
The Group’s management plans to adopt all of the above standards in the Group’s consolidated financial statements for the respective periods. The Group’s management is currently assessing the impact of IFRS 18 Presentation and Disclosure in Financial Statements on the Group’s consolidated financial statements. The other amendments mentioned above are not expected to have a material impact on the Group’s consolidated financial statements in the future reporting periods and on foreseeable future transactions.
Reclassification
At 31 December 2025 Group`s certain employee and former employee benefit provisions were reclassified from social liabilities to employee benefit obligations. The reassessment of the classification of these provisions did not have a significant impact on the consolidated statement of financial position.
At 31 December 2025 Management also reassessed classification of the following cost items in cost of metal sales: labour costs, third parties’ services and other costs as well as classification of certain cost items in selling and distribution expenses, general and administrative expenses and other operating expenses for the year ended 31 December 2025. Information for the years ended 31 December 2024 and 2023 was reclassified to conform with the current period presentation.
4. Material accounting policies
Functional and presentation currency
Russian rouble (“RUB”) is the functional currency of the Company and all of its subsidiaries except for the Group’s foreign subsidiary operating in metal processing whose functional currency is US Dollar (“USD”).
The presentation currency of the Group’s consolidated financial statements is US Dollar (“USD”). Using USD as a presentation currency is a common practice among global mining companies. The Group also issues consolidated financial statements which use RUB as the presentation currency to comply with Federal Law 208‑FZ.
Components of the consolidated statement of financial position, consolidated income statement, consolidated statement of comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity are translated into presentation currency using the following applicable exchange rates:
Component of consolidated financial statements
Applicable exchange rates
Assets and liabilities
Period‑end rate
Income, expenses, and cash flows
Transaction date or an average approximating exchange rates prevailing at the transactions dates
Equity
Historical rates
All exchange differences resulting from translation of the consolidated income statement and consolidated statement of financial position components are recognised as a separate component in other comprehensive income/(loss).
The exchange rates of certain currencies to the Russian Rouble used in the preparation of the consolidated financial statements were as follows:
At 31 December 2023
At 31 December 2024
At 31 December 2025
US Dollar/RUB
89.69
101.68
78.23
Euro/RUB
99.19
106.10
92.09
Chinese yuan/RUB
12.58
13.43
11.16
During the year ended 31 December 2023
During the year ended 31 December 2024
During the year ended 31 December 2025
US Dollar/RUB
85.25
92.57
83.62
Euro/RUB
92.24
100.22
94.31
Chinese yuan/RUB
11.98
12.74
11.57
Revenue recognition
Metal sales revenue
Revenue from metal sales is recognised at a point of time when control over the asset is transferred to the customer and represents the invoiced value, net of value added tax (if any). Revenue from contracts that are entered into and continue to meet the Group’s expected sale requirements designated for that purpose at their inception and are expected to be settled by physical delivery of the goods, is recognised in the consolidated financial statements as and when the goods are delivered. A gain or loss on forward contracts expected to be settled by physical delivery or on a net basis is recognised in revenue and disclosed separately from revenue from contracts with customers.
As a practical expedient, the Group does not adjust the promised amount of consideration for the effects of a significant financing component, if the expected period between when the Group transfers promised goods or a service to a customer and the customer pays for those goods or services is one year or less.
Certain contracts are provisionally priced so that price is not settled until a predetermined future date, as of which the delivery price is settled based on the market price (contracts with quotation period). Revenue from such transactions is initially recognised at the market price at the date of sale and price adjustments under provisionally priced contracts are recognised in revenue.
Employee benefits
The Group recognises employee benefits as follows:
Short‑term employee benefits are recognised as labour and staff costs in the consolidated income statement in the reporting period when the employees render the related services.
Social security contributions are recognised as labour and staff costs in the consolidated income statement. Social security contributions include the obligatory pension, social, and medical contributions paid to the Social Fund of Russia at the rates set depending on levels of employee’s annual remuneration in accordance with the Russian legislation.
Contributions to the mutual accumulated pension programme are recognised as a defined contribution plan. The only obligation of the Group with respect to this defined contribution plan is to make the specified contributions during the period when they arise. Such contributions are recognised as labour and staff costs in the consolidated income statement in the reporting period when the employees render the related services.
Employee benefits under short‑term incentive programmes are recognised as labour and staff costs in the consolidated income statement when accrued.
Employee benefits under long‑term incentive programmes are recognised as labour and staff costs in the consolidated income statement in the reporting period when the employees render the services that qualify for the benefits under the programmes.
Employee benefits deferred costs under subsidised housing programmes for employees are recognised as other non‑current assets and amortised over the period of employee participation in the programme (two to ten years).
Long‑term employee benefit obligations are recognised at the discounted value of respective future cash outflows.
Income tax expense
Income tax expense represents the sum of the current and deferred tax.
Income tax is recognised as an expense or income in the consolidated income statement unless it relates to other items recognised directly in other comprehensive income, in which case the tax effect is also recognised in other comprehensive income. Where current or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
Current tax
Current tax is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the consolidated income statement because it excludes items of income or expense that are taxable or deductible in other years and excludes items that are not taxable or deductible.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Deferred tax assets and liabilities are not recognised in the consolidated financial statements, if temporary differences arise from the initial recognition of goodwill or from the initial recognition of assets and liabilities other than in a business combination, which, at the time of the transaction, affects neither taxable profit nor accounting profit and do not give rise to equal taxable and deductible temporary differences.
The carrying amount of deferred tax assets is reviewed at each reporting date and adjusted to the extent that it is probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
The measurement of deferred tax assets and liabilities reflects the tax consequences of the manner in which the Group expects at the reporting date to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off tax assets against tax liabilities and when they relate to income taxes levied by the same tax authority.
Property, plant and equipment
Mining assets
Mine development costs are capitalised and comprise expenditures directly related to:
acquiring mining and exploration licences;
developing new mines;
estimating revised content of minerals in the existing ore bodies currently developed;
expanding mine capacity.
Mine development costs include directly attributable finance costs capitalised during mine development.
Mine development costs are recognised as mining assets and start to be depreciated when a mine reaches commercial production quantities.
Mining assets are recognised at cost less accumulated depreciation and impairment loss. Mining assets include cost of acquiring and developing mining properties, pre‑production expenditure, mine infrastructure, property, plant and equipment that process extracted ore, subsoil use rights, mining and exploration licenses, finance costs eligible for capitalisation and discounted value of future decommissioning costs.
Carrying value of mining assets is depreciated over the lesser of their individual economic useful life on a straight‑line basis, or the remaining life of mine. Life of mine is estimated based on the Group production plans. Average useful lives of property, plant and equipment vary from 2 to 47 years.
Exploration expenditure
Exploration expenditure, including geophysical, topographical, geological and similar types of expenditure is capitalised and amortised over the life of mine from the moment the commercial viability of the project is established. Otherwise, it is expensed in the period in which it is incurred.
Exploration expenditure written‑off before the start of mine development is not subsequently capitalised, even if commercial production subsequently commences.
Non‑mining assets
Non‑mining assets include metallurgical processing plants, buildings, infrastructure, machinery and equipment, and other non‑mining assets. Such assets are measured at cost less accumulated depreciation and impairment losses. Non‑mining assets include property, plant and equipment used both in operations directly and to provide social services in the regions where the Group operates.
Non‑mining assets are depreciated on a straight‑line basis over their economic useful life.
Depreciation charge is calculated over the following economic useful life:
buildings, facilities and infrastructure 5 to 50 years
machinery, equipment and transport 2 to 33 years
other non‑mining assets 2 to 20 years
Capital construction‑in‑progress
Capital construction‑in‑progress comprises costs directly related to the construction of mining and non‑mining assets, including:
prepayments for the purchase of property, plant and equipment and materials acquired for the construction of buildings, processing plants, infrastructure, machinery and equipment;
irrevocable letters of credit opened for future property, plant and equipment deliveries and secured by deposits placed with banks;
directly attributable finance costs capitalised during construction.
Depreciation of these assets begins when they become available for use and are in the location and condition necessary for them to be capable of operating in the manner intended by management.
Capitalisation of finance costs
Finance costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until the assets are ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Impairment of non‑current assets, excluding goodwill
At each reporting date, the Group analyses the indicators of impairment of its non‑current assets to determine whether there is any indication that an impairment loss has been incurred. If any such indicators exist, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell or value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre‑tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash‑generating unit. Where the fair value less costs of disposal of an individual asset is higher than their carrying amount the Group does not estimate its value in use. If the recoverable amount of an asset (or cash‑generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash‑generating unit) is reduced to its recoverable amount. An impairment loss is recognised in the consolidated income statement immediately.
Where an impairment loss is subsequently reversed, the carrying amount of the asset (or cash‑generating unit) is increased to the revised estimate of its recoverable amount but only to the extent that the increased carrying amount does not exceed the original carrying amount that would have been determined had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the consolidated income statement immediately.
Leases
At the inception of a contract, the Group assesses whether such contract or its components constitute a lease. The Group recognises a right‑of‑use asset and a corresponding lease liability, if a lease contract transfers to the lessee the right to control the use of the identified asset for a period of time in exchange for a consideration, except for current leases with the term of 12 months or less. The Group recognises lease payments associated with current leases as an expense on a straight‑line basis over the lease term. Land plot lease payments are treated as variable lease payments, if they are linked to the cadastral value and changes in the latter do not depend on market rental rates. The Group recognises such variable lease payments as an expense in the period when the event that triggers those payments occurs.
Right‑of‑use assets are initially recognised at cost that comprises when applicable:
the initial amount of the lease liability;
any lease payments made at or before the lease commencement date;
any initial direct costs incurred by the lessee;
an estimate of costs to be incurred by the lessee for retirement of the underlying asset and restoration of the site where it is located.
Right‑of‑use assets are subsequently measured at initial cost less any accumulated depreciation and any accumulated impairment losses, adjusted for any remeasurement of the lease liability. Right‑of‑use assets are depreciated on a straight‑line basis over their estimated economic useful life or over the term of the lease, whichever is shorter. Right‑of‑use assets are presented in property, plant and equipment in the consolidated statement of financial position.
Lease liabilities (refer to Note 25) are initially measured at the present value of the lease payments that are not paid at the commencement date and subsequently remeasured to reflect changes in lease payments. The lease payments are discounted using the interest rate implicit in the lease (if that rate can be readily determined) or using Group incremental borrowing rate at the commencement date determined based on the lease term and currency of the lease payments.
Investments in associates and joint ventures
An associate is an entity over which the Group exercises significant influence, but not control or joint control, through participation in financing and operating policy decisions, in which it normally owns between 20% and 50% of the voting equity. A joint venture is an entity in which the Group and other investors have joint control, i.e. decisions about the relevant activities of the investee require unanimous consent of the parties sharing control and the Group has rights to its share of the investee’s net assets. The existence of significant influence or joint control is determined based on the respective rights of investors established by investee’s charter, corporate agreement, shareholders’ agreement or similar arrangements.
Investments in associates and joint ventures are accounted for using the equity method from the date significant influence or joint control commenced until the date that significant influence or joint control effectively ceased.
Under the equity method of accounting, investments in associates and joint ventures are initially recognised at cost and are adjusted thereafter to recognise the Group’s share of the post‑acquisition profit or loss and other movements in investee’s equity and reserves.
Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in the investees. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Financial assets
Financial assets are recognised when the Group becomes party to contractual provisions of the instrument and are initially measured at fair value, plus directly attributable transaction costs, except for those financial assets measured at fair value through profit or loss, which are initially measured at fair value.
Financial assets are classified into the following categories:
financial assets measured at amortised cost;
financial assets measured at fair value through other comprehensive income;
financial assets measured at fair value through profit or loss.
The classification of financial assets depends on the Group’s business model for managing the financial assets and the contractual cash flow characteristics of the financial asset and is determined at the time of initial recognition.
Effective interest method
The effective interest method is used for calculating the amortised cost of a financial asset and for allocating interest income over the period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including directly attributable transaction costs and other premiums or discounts) through the expected life of the financial asset, or, where appropriate, a shorter period.
Income is recognised on an effective interest rate basis for debt instruments other than those financial assets measured at fair value through profit or loss or fair value through other comprehensive income.
Financial assets measured at amortised cost
The Group generally classifies cash and cash equivalents, trade and other receivables (excluding trade receivables measured at fair value through profit and loss under provisionally priced contracts), loans issued and bank deposits as financial assets measured at amortised cost.
Financial assets measured at fair value through profit or loss
All financial assets not classified as measured at amortised cost or at fair value through other comprehensive income are classified as financial assets measured at fair value through profit or loss.
Trade receivables under provisionally priced contracts and derivative financial assets are measured at fair value through profit or loss. Trade receivables under provisionally priced contracts are remeasured at each reporting date using the forward market price for the period till the price settlement date outlined in the contract.
Impairment of financial assets
The Group recognises an allowance for expected credit losses on a financial asset measured at amortised cost using either of the following methods:
Lifetime expected credit losses
Trade and other receivables
Financial assets other than trade and other receivables for which credit risk has increased significantly since initial recognition
12‑months expected credit losses since the reporting date
Financial assets other than trade and other receivables at initial recognition
Financial assets other than trade and other receivables for which credit risk has not increased significantly since initial recognition
When determining whether the credit risk of the financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Group considers reliable and supportable information, including both quantitative and qualitative information and analysis based on the Group’s historical experience and forward‑looking information.
The Group applies the simplified approach to measuring expected credit losses under IFRS 9 Financial Instruments, which uses a lifetime expected loss allowance for trade receivables. The Group assumes that expected credit loss for all trade and other receivables which are overdue for more than 365 days is equal to their carrying amount. To measure the expected credit losses trade and other receivables that are overdue for less than 365 days are grouped based on the length of the overdue period to which respective expected loss rates are applied. The expected loss rates are based on the historical credit loss experience, adjusted to reflect current and forward‑looking information on the ability of the customers to settle the receivables.
When trade and other receivables are considered uncollectable, they are written off against the respective loss allowance. Changes in the amount of allowance are recognised in the consolidated income statement.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances, cash deposits in banks, brokers and other financial institutions and highly liquid investments with original maturities of three months or less and on demand deposits, which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
Inventories
Refined metals
The Group’s main jointly produced metals include nickel, copper, palladium, platinum; by‑products include cobalt, gold, rhodium, silver, and other metals. Main products are measured at the lower of cost of production or net realisable value. The cost of production of main products is determined as total production cost allocated to each joint product by reference to the share of this metal revenue in total revenue. Export customs duties (if applicable), transportation costs and other costs incurred by the Group before the produced finished goods are designated for sale under a particular contract with a customer are included in the cost of production, all costs incurred after that point are included in selling and distribution expenses. By‑products are initially measured at net realisable value, based on current market prices. Net realisable value estimates take into consideration fluctuations of price or cost directly relating to events after the reporting date, to the extent that such events confirm conditions existing at the end of the reporting period.
Work‑in‑process
Work‑in‑process includes all costs incurred in the ordinary course of business for producing each product including direct material and labour costs, allocation of production overheads, depreciation, amortisation and other costs, given its stage of completion, less allowance for adjustment to net realisable value. Changes in the amount of allowance are recognised in Cost of metal sales in the consolidated income statement.
Materials and supplies
Materials and supplies are measured at cost less allowance for obsolete and slow‑moving items.
Financial liabilities
The Group classifies financial liabilities into loans and borrowings, trade and other payables. Such financial liabilities are recognised initially at fair value less any directly attributable transaction costs. Subsequent to initial recognition, the financial liabilities are measured at amortised cost using the effective interest method. Derivative financial liabilities are measured at fair value through profit or loss.
Effective interest method
The effective interest method is used for calculating the amortised cost of a financial liability and for allocating interest expense over the period. The effective interest rate is the rate that exactly discounts estimated future cash outflows through the expected life of the financial liability, or where appropriate, a shorter period.
Supply chain finance
Some Group suppliers during fulfillment of contracts enter at their own discretion into arrangements to assign monetary claims against the Group under supply contracts to financing agents and receive payments earlier than the date stipulated in the supply contract. The Group presents payables under the supply chain finance as trade and other payables taking into consideration that the Group’s original payables to suppliers are neither legally released nor their nature, amount and other terms are modified after being assigned by a supplier to a financing agent. Related payments remain consistent with the normal operating cycle of the Group, reflecting the duration of deliveries and overall production process. Cash outflows to settle these payables are presented in operating or investing activities based on their nature.
Provisions
Provisions are recognised when the Group has a legal or constructive obligation as a result of past events for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. If, in the course of discharging an obligation, the Group recognises property, plant and equipment, then this settlement does not result in an outflow of the Group’s resources and, therefore, no provision is recognised.
Provisions may be recognised in respect of the Group social, environmental, property, plant and equipment decommissioning or other obligations, and are presented in these consolidated financial statements accordingly. In particular, the Group’s social provisions are presented together with other liabilities related to its social expenditure as a separate item Social Liabilities in the consolidated statement of financial position.
The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using future cash flows, its carrying amount is the present value of those cash flows.
The unwinding of discount on obligations is recognised in Finance costs, net in the consolidated income statement. Provisions are periodically remeasured for changes in applicable laws, regulations, estimated timing of obligations settlement, inflation and discount rates.
Decommissioning obligations and environmental provisions
Decommissioning obligations include direct property, plant and equipment decommissioning expenditure as well as related land restoration expenditure.
Decommissioning obligations discounted to present value are recognised when a legal or constructive obligation in relation to such expenditure arises and the amount of future expenditure can be reliably estimated. These expenditures are capitalised as part of the initial cost of the related asset and are depreciated over the useful life of the asset.
When a decrease of a decommissioning obligation as a result of its remeasurement exceeds the carrying amount of the respective asset, the excess is immediately recognised in the Other operating expenses, net in the consolidated income statement.
Environmental provisions may include expenditure for remediation of the damage to the environment, including land and water bodies clean‑up and rehabilitation costs, restoration of biological resources, settlement of legal claims and environmental damages, fines and penalties imposed by government authorities in respect of the environmental incidents.
5. Critical accounting judgements and key sources of estimation uncertainty
When preparing the consolidated financial statements, the Group’s management necessarily makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the reporting date, and the amounts of income and expenses for the reporting period. Estimates and assumptions require management judgement based on historical experience, current and expected economic conditions, and any other available information. Actual results may differ from such estimates. Key estimates and assumptions made by the Group’s management are disclosed below or elsewhere in the notes to the consolidated financial statements if applicable.
The most significant areas requiring the use of management estimates and assumptions are as follows:
useful economic life of property, plant and equipment;
impairment of non‑financial assets;
decommissioning obligations and environmental provisions;
income taxes.
Useful economic life of property, plant and equipment
The factors that may affect estimates of the useful economic life of mining assets include the following:
changes in proved and probable ore reserves;
the grade of ore reserves changing significantly over time;
differences between actual commodity prices and commodity price assumptions used in the estimation and classification of ore reserves;
unforeseen operational issues at mine sites;
changes in capital, operating, mining, processing and decommissioning costs, discount rates and foreign exchange rates that could possibly adversely affect the economic viability of ore reserves.
The useful economic life of non‑mining property, plant and equipment is reviewed by the management periodically, based on the current condition of the assets and the estimated period during which they will continue to bring economic benefits to the Group.
Impairment of non‑financial assets
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible non‑financial assets for an indication that these assets may be impaired or that a previously recognised impairment loss may have decreased in full or in part. For the purpose of the impairment test, the assets that do not generate independent cash flows are allocated to an appropriate cash‑generating unit. Management applies judgement in allocating assets that do not generate independent cash flows to appropriate cash‑generating units, and in estimating the timing and amounts of the underlying cash flows. Subsequent changes to the assets allocation to cash generating units or the timing and amounts of cash flows may affect the recoverable amount of the respective assets.
Decommissioning obligations and environmental provisions
The Group’s mining and exploration activities are subject to various environmental laws and regulations. The Group estimates decommissioning obligations and environmental provisions based on the management’s understanding of the current legal requirements in the various jurisdictions in which it operates, terms of licenсe agreements and internally generated engineering estimates. Decommissioning obligations and environmental provisions are measured at present value using inflation and discount rates at the date of respective cash outflows.
Environmental provisions are recognised based on the best estimate of the consideration required to settle the environmental provision at the reporting date, taking into account risks and uncertainties surrounding the present obligation, including probable compensations under civil lawsuits and costs to be incurred under corresponding environmental programmes. Where it is possible to determine a reliable timing of the environmental provisions, estimates are based on the discounted value of cash flows required to settle those obligations, otherwise the management uses the best estimate of the future cash outflows related to the environmental provisions.
Actual costs incurred in future periods may differ materially from the amounts of the provisions. Additionally, future changes to environmental laws and regulations, life of mine estimates, discount rates, court decisions and government actions may affect the carrying amount of these provisions.
Income taxes
The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining provisions for income taxes paid in various jurisdictions due to the complexity of legal frameworks. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Group recognises provisions for taxes arising from tax audits based on estimates of whether additional taxes will be due. Where, following the tax disputes, the final tax amount differs from the amounts that were initially recognised, such differences are recognised in the consolidated financial statements for the period when such determination is made.
Various factors are considered when assessing the probability of the future utilisation of deferred tax assets, including past operating results, the Group’s operational plan, expiration of tax losses carried forward, and tax planning strategies. If actual results differ from these estimates or if these estimates are to be adjusted in future periods, the financial position and financial results of the Group may be affected.
6. Segments
Reportable segments are based on internal reports on components of the Group that are regularly reviewed by the Management Board.
Management has determined the following reportable segments:
GMK Group segment includes main mining, processing and metallurgy operations as well as transport services, energy, repair and maintenance services located on the Taimyr Peninsula;
South Cluster segment includes certain ore mining and processing operations located on the Taimyr Peninsula;
Kola Division includes mining and processing operations, metallurgy and subsequent processing of metal semi‑products, as well as energy and utilities services and mineral exploration activities on the Kola Peninsula;
GRK Bystrinskoye segment includes ore mining and processing operations located in the Zabaikalsky Territory of the Russian Federation;
Other non‑metallurgical segment includes resale of third‑party refined metal products, other trading operations, transport services, supply chain management, energy and utility, research and other activities located in Russia and abroad.
Corporate activities of the Group do not represent an operating segment, include primarily the headquarters’ general and administrative expenses and treasury operations of the Group and are presented as Unallocated.
The amounts in respect of reportable segments in the disclosure below are stated before intersegment eliminations, excluding:
balances of intercompany loans and borrowings and interest accruals;
balances of intercompany investments;
accrual of intercompany dividends.
Amounts are measured on the same basis as those in the consolidated financial statements.
The following tables present revenue, measure of segment profit or loss (EBITDA) and other segment information from continuing operations regarding the Group’s reportable segments for the years ended 31 December 2025, 2024 and 2023, respectively.
For the year ended 31 December 2025
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
For the year ended 31 December 2025
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
Revenue from external customers
Metal sales
5,250
–
6,048
1,580
105
–
12,983
Other sales
220
4
40
7
509
–
780
Intersegment revenue
Metal sales
5,235
732
978
229
–
(7,174)
–
Other sales
348
173
2
60
704
(1,287)
–
Total revenue
11,053
909
7,068
1,876
1,318
(8,461)
13,763
Segment EBITDA
3,797
301
773
1,438
(12)
38
6,335
Unallocated
(667)
Consolidated EBITDA
5,668
Depreciation and amortisation
(1,411)
Impairment of non‑financial assets, net
(319)
Finance costs, net
(934)
Foreign exchange gain/(loss), net
78
Income from investments and gain on disposal of subsidiaries, joint ventures, joint operations and associates, net
204
Profit before tax
3,286
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
Other material cash and non‑cash items
Purchase of property, plant and equipment and intangible assets
1,867
188
258
113
202
–
2,628
Depreciation and amortisation
1,009
65
121
103
113
–
1,411
Impairment/(Reversal оf impairment) of non‑financial assets, net
220
–
109
4
(14)
–
319
Increase/(decrease) in provisions and allowances
120
–
22
(1)
(3)
36
174
For the year ended 31 December 2024
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
For the year ended 31 December 2024
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
Revenue from external customers
Metal sales
4,741
–
5,805
1,300
2
–
11,848
Other sales
218
3
34
5
427
–
687
Intersegment revenue
Metal sales
4,369
568
843
167
–
(5,947)
–
Other sales
325
144
2
39
579
(1,089)
–
Total revenue
9,653
715
6,684
1,511
1,008
(7,036)
12,535
Segment EBITDA
3,594
251
882
1,108
(18)
58
5,875
Unallocated
(679)
Consolidated EBITDA
5,196
Depreciation and amortisation
(1,181)
Impairment of non‑financial assets, net
(441)
Finance costs, net
(896)
Foreign exchange gain/(loss), net
(343)
Income from investments, net
69
Profit before tax
2,404
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
Other material cash and non‑cash items
Purchase of property, plant and equipment and intangible assets
1,677
185
282
98
196
–
2,438
Depreciation and amortisation
778
46
177
105
75
–
1,181
Impairment of non‑financial assets, net
263
2
156
1
19
–
441
Increase/(decrease) in provisions and allowances
1
(17)
12
–
18
31
45
For the year ended 31 December 2023
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metal‑ lurgical
Elimi‑ nations
Total
For the year ended 31 December 2023
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metal‑ lurgical
Elimi‑ nations
Total
Revenue from external customers
Metal sales
5,171
–
7,354
1,160
17
–
13,702
Other sales
250
4
31
2
420
–
707
Intersegment revenue
Metal sales
4,742
916
1,009
128
47
(6,842)
–
Other sales
325
146
2
50
580
(1,103)
–
Total revenue
10,488
1,066
8,396
1,340
1,064
(7,945)
14,409
Segment EBITDA
3,641
484
2,254
963
(25)
343
7,660
Unallocated
(776)
Consolidated EBITDA
6,884
Depreciation and amortisation
(1,165)
Impairment of non‑financial assets, net
(179)
Finance costs, net
(567)
Foreign exchange gain/(loss), net
(1,512)
Income from investments and gain on disposal of subsidiaries, joint ventures, joint operations and associates, net
73
Profit before tax
3,534
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
Other material cash and non‑cash items
Purchase of property, plant and equipment and intangible assets
2,303
248
248
65
174
–
3,038
Depreciation and amortisation
739
56
162
118
90
–
1,165
Impairment of non‑financial assets, net
67
9
28
1
74
–
179
Increase/(decrease) in provisions and allowances
11
(1)
10
–
6
51
77
The following tables present assets and liabilities of the Group’s reportable segments at 31 December 2025, 2024 and 2023, respectively.
At 31 December 2025
GMK Group
South cluster
Kola division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
Intersegment assets
1,966
129
1,037
105
110
(3,347)
–
Segment assets
20,056
1,550
4,171
1,453
2,170
(718)
28,682
Total segment assets
22,022
1,679
5,208
1,558
2,280
(4,065)
28,682
Unallocated
2,574
Total assets
31,256
Intersegment liabilities
448
72
1,410
10
1,407
(3,347)
–
Segment liabilities
5,262
398
461
217
420
–
6,758
Total segment liabilities
5,710
470
1,871
227
1,827
(3,347)
6,758
Unallocated
11,053
Total liabilities
17,811
At 31 December 2024
GMK Group
South cluster
Kola Division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
Intersegment assets
1,594
76
1,290
310
76
(3,346)
–
Segment assets
14,027
1,035
3,105
1,057
2,316
(577)
20,963
Total segment assets
15,621
1,111
4,395
1,367
2,392
(3,923)
20,963
Unallocated
2,207
Total assets
23,170
Intersegment liabilities
269
25
805
4
2,243
(3,346)
–
Segment liabilities
3,183
230
352
190
343
–
4,298
Total segment liabilities
3,452
255
1,157
194
2,586
(3,346)
4,298
Unallocated
10,775
Total liabilities
15,073
At 31 December 2023
GMK Group
South cluster
Kola Division
GRK Bystrinskoye
Other non‑metallurgical
Eliminations
Total
Intersegment assets
1,618
196
1,308
173
171
(3,466)
–
Segment assets
14,326
965
3,728
1,252
1,661
(731)
21,201
Total segment assets
15,944
1,161
5,036
1,425
1,832
(4,197)
21,201
Unallocated
2,379
Total assets
23,580
Intersegment liabilities
552
30
851
32
2,001
(3,466)
–
Segment liabilities
2,909
243
415
125
428
–
4,120
Total segment liabilities
3,461
273
1,266
157
2,429
(3,466)
4,120
Unallocated
11,865
Total liabilities
15,985
The following table presents segment metal sales to external customers breakdown by metal for the years ended 31 December 2025, 2024 and 2023, respectively.
GMK Group
Kola Division
GRK Bystrinskoye
Other non‑metallurgical
Total
Nickel
X
X
X
X
X
Copper
X
X
X
X
X
Palladium
X
X
X
X
X
Platinum
X
X
X
X
X
Gold
X
X
X
X
X
Other metals
X
X
X
X
X
X
X
X
X
12,983
For the year ended 31 December 2024
GMK Group
Kola Division
GRK Bystrinskoye
Other non‑metallurgical
Total
Nickel
X
X
X
X
X
Copper
X
X
X
X
X
Palladium
X
X
X
X
X
Platinum
X
X
X
X
X
Gold
X
X
X
X
X
Other metals
X
X
X
X
X
X
X
X
X
11,848
For the year ended 31 December 2023
GMK Group
Kola Division
GRK Bystrinskoye
Other non‑metallurgical
Total
Nickel
X
X
X
X
X
Copper
X
X
X
X
X
Palladium
X
X
X
X
X
Platinum
X
X
X
X
X
Gold
X
X
X
X
X
Other metals
X
X
X
X
X
X
X
X
X
13,702
7. Metal sales
The Group’s metal sales to external customers are detailed below:
For the year ended 31 December
2023
2024
2025
Metal sales in all sales regions
13,702
11,848
12,983
For the year ended 31 December 2025 metal revenue included gain of USD 20 million from price adjustments in respect of certain provisionally priced contracts, primarily for sale of palladium and copper (for the year ended 31 December 2024 primarily for sale of nickel and copper: loss in the amount of USD (107) million and for the year ended 31 December 2023 primarily for sale of nickel and palladium: loss in the amount of USD (47) million).
8. Cost of metal sales
For the year ended 31 December
2023
2024
2025
For the year ended 31 December
2023
2024
2025
Cash operating costs
Labour
1,912
1,859
2,319
Materials and supplies
985
918
1,020
Third party services
874
784
887
Mineral extraction tax and other levies
873
748
873
Fuel
157
149
175
Transportation expenses
216
157
132
Electricity and heat energy
115
108
127
Purchases of refined metals for resale
5
–
95
Purchases of raw materials and semi‑products
33
26
23
Export customs duties
121
350
–
Other costs
20
20
22
Total cash operating costs
5,311
5,119
5,673
Depreciation and amortisation
939
960
1,192
Decrease in metal inventories
94
142
55
Total
6,344
6,221
6,920
9. General and administrative expenses
For the year ended 31 December
2023
2024
2025
Staff costs
705
665
813
Third party services
181
183
213
Depreciation and amortisation
110
91
95
Property tax and other miscellaneous taxes
75
77
97
Other
22
30
23
Total
1,093
1,046
1,241
10. Selling and distribution expenses
For the year ended 31 December
2023
2024
2025
Transportation expenses
135
129
150
Third party services
31
29
49
Staff costs
28
27
45
Depreciation and amortisation
23
23
24
Marketing expenses
29
23
23
Export customs duties
43
176
–
Other
7
12
28
Total
296
419
319
11. Other operating expenses, net
For the year ended 31 December
2023
2024
2025
Social expenses (Note 27)
179
103
253
Loss on disposal of property, plant and equipment and intangible assets
36
36
67
Change in decommissioning obligations
45
5
53
Change in other allowances
47
74
28
Proceeds from insurance claims settlements
(27)
(35)
(42)
Change in environmental provisions (Note 26)
(32)
3
(22)
Other, net
21
(8)
(4)
Total
269
178
333
12. Finance costs, net
For the year ended 31 December
2023
2024
2025
Interest expense, net of amounts capitalised
337
620
537
Unwinding of discount on provisions
147
185
294
Interest expense on lease liabilities
35
52
59
Loss/(income) from currency conversion operations
(5)
45
43
Fair value loss/(gain) on the cross‑currency interest rate swap contracts
60
(16)
–
Other, net
(7)
10
1
Total
567
896
934
13. Income tax expense
For the year ended 31 December
2023
2024
2025
Current income tax expense
966
340
335
Deferred tax expense
(302)
249
481
Total income tax expense
664
589
816
Current income tax expense for the year ended 31 December 2025 includes USD 6 million gain related to previous tax periods (31 December 2024: USD 4 million gain and 31 December 2023: USD 8 million gain).
A reconciliation of theoretic income tax, calculated at the statutory rate in the Russian Federation, the location of major production assets of the Group, to the amount of actual income tax expense recognised in the consolidated income statement is as follows:
For the year ended 31 December
2023
2024
2025
Profit before tax
3,534
2,404
3,286
Income tax at the nominal rate
707
481
822
Non‑deductible social expenses
48
30
22
Changes in unrecognised deferred tax assets
28
82
23
Effect of different tax rates of subsidiaries
(1)
11
(12)
Tax effect of other permanent differences
(202)
(45)
(39)
Windfall tax
84
–
–
Remeasurement of dеferred taxes at 25% statutory tax rate
–
30
–
Total income tax expense
664
589
816
The nominal income tax rate is 25% for the period 2025 and 20% for the periods 2023 and 2024 due to the change in the tax legislation from 1 January 2025. The deferred tax assets and liabilities of the Group entities in Russia at 31 December 2024 were remeasured at 25% income tax rate, and the net effect of an increase in deferred tax liabilities in the amount of USD 30 million was recognised in deferred tax expense.
In 2025, 2024 and 2023 the tax effect of other permanent differences was mainly represented by an income tax rate credit applicable to certain Group’s subsidiaries.
The corporate income tax rates in other countries where the Group has a taxable presence vary from 0% to 30%.
The Group operates in several jurisdictions that implemented global minimum tax rules for multinational enterprises (GloBE/Pillar Two). In 2025 the application of the GloBE rules affected Group companies in Cyprus, Switzerland, and Hong Kong through the domestic minimum top‑up tax (DMTT) rule. The effect of applying the DMTT rules in these jurisdictions was an increase of the accrued corporate income tax if the effective tax rate on qualifying income of the Group companies in these jurisdictions for 2025 was less than 15%. The amount of additional income tax accrued under the DMTT rule for 2025 was USD 1 million.
In August 2023 the Federal Law introduced a windfall tax on excess profits. The base windfall tax rate was 10% of the difference between average taxable profits for 2021‑2022 and taxable profits for2018‑2019. The amount of tax expense could be reduced to an effective rate of 5% subject to the conditions provided by the Federal Law (if the payment was made during the period from 1 October 2023 to 30 November 2023 and it was not subsequently claimed back by a taxpayer). In October 2023 the Group paid using an early payment option and recognised in Current income tax expense the windfall tax on excess profits in the amount of RUB 8,198 million (USD 84 million at the exchange rate on the date of payment).
Deferred tax balances
At 31 December 2024
Recognised in income statement
Disposal of subsidiaries, joint ventures, joint operations and associates
Effect of translation to presentation currency
At 31 December 2025
At 31 December 2024
Recognised in income statement
Disposal of subsidiaries, joint ventures, joint operations and associates
Effect of translation to presentation currency
At 31 December 2025
Property, plant and equipment, right‑of use assets
965
361
2
305
1,633
Inventories
(155)
27
1
(52)
(179)
Trade and other receivables
(59)
68
–
(9)
–
Decommissioning obligations
(156)
(122)
–
(50)
(328)
Other provisions
(71)
(45)
–
(23)
(139)
Loans and borrowings, trade and other payables, lease liabilities
(442)
236
–
(117)
(323)
Other assets
39
(16)
(1)
1
23
Other liabilities
73
(3)
(2)
22
90
Tax loss carry‑forwards
(141)
(25)
1
(47)
(212)
Net deferred tax liabilities/(assets)
53
481
1
30
565
At 31 December 2023
Recognised in income statement
Recognised in other compre‑hensive income
Effect of translation to presentation currency
At 31 December 2024
At 31 December 2023
Recognised in income statement
Recognised in other compre‑hensive income
Effect of translation to presentation currency
At 31 December 2024
Property, plant and equipment, right‑of use assets
613
449
–
(97)
965
Inventories
(109)
(56)
–
10
(155)
Trade and other receivables
(33)
(30)
–
4
(59)
Decommissioning obligations
(83)
(89)
–
16
(156)
Other provisions
(46)
(30)
–
5
(71)
Loans and borrowings, trade and other payables, lease liabilities
(526)
26
–
58
(442)
Other assets
36
5
–
(2)
39
Other liabilities
48
31
(1)
(5)
73
Tax loss carry‑forwards
(93)
(57)
–
9
(141)
Net deferred tax (assets)/liabilities
(193)
249
(1)
(2)
53
At 1 January 2023
Recognised in income statement
Recognised in other compre‑hensive income
Disposal of subsidiaries, joint ventures, joint operations and associates
Effect of translation to presentation currency
At 31 December 2023
At 1 January 2023
Recognised in income statement
Recognised in other compre‑hensive income
Disposal of subsidiaries, joint ventures, joint operations and associates
Effect of translation to presentation currency
At 31 December 2023
Property, plant and equipment, right‑of use assets
593
170
–
(3)
(147)
613
Inventories
(203)
94
–
9
(9)
(109)
Trade and other receivables
(4)
(91)
–
–
62
(33)
Decommissioning obligations
(101)
(5)
–
–
23
(83)
Environmental provisions
(3)
2
–
–
1
–
Other provisions
(58)
–
–
–
12
(46)
Loans and borrowings, trade and other payables, lease liabilities
(117)
(491)
–
–
82
(526)
Other assets
24
6
–
3
3
36
Other liabilities
59
7
(8)
–
(10)
48
Tax loss carry‑forwards
(115)
6
–
–
16
(93)
Net deferred tax liabilities/(assets)
75
(302)
(8)
9
33
(193)
Accounting for foreign exchange differences for tax purposes is disclosed in Note 32.
At 31 December 2025, 2024 and 2023 deferred tax assets and liabilities are offset only to the extent they relate to the same legal entity within the Group.
Unrecognised deferred tax assets
Deferred tax assets that have not been recognised were as follows:
At 31 December
2023
2024
2025
Deductible temporary differences
144
223
262
Tax loss carry‑forwards
93
118
150
Total
237
341
412
Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilise the benefits therefrom.
At 31 December 2022, a deferred tax asset of USD 38 million related to tax losses of previous years on disposal of shares of OJSC “Third Generation Company of the Wholesale Electricity Market” was not recognised as it had occurred before the Company joined the consolidated taxpayers group. As the agreement that established the consolidated taxpayers group expired on 1 January 2023 and taking into account an assessment of the probability for recovery of the above deferred tax asset this asset was recognised in full in 2023. At 31 December 2024, the specified deferred tax asset was fully utilised.
At 31 December 2025 unrecognised deferred tax assets related to other tax loss carry‑forwards amounted to USD 150 million (31 December 2024: USD 118 million and 31 December 2023: USD 93 million). According to the Tax code of the Russian Federation tax losses may be carried forward to future periods without restrictions, however the taxable base for the current period cannot be reduced by the amount of tax losses incurred in previous periods by more than 50%.
At 31 December 2025, the Group did not recognise a deferred tax liability in respect of taxable temporary differences of USD 4,259 million (31 December 2024: USD 4,000 million and 31 December 2023: USD 3,382 million) associated with investments in subsidiaries, because management believes that it is able to control the timing of reversal of such differences and does not expect their reversal in foreseeable future.
14. Property, plant and equipment
Mining assets and mine development cost
Non‑mining assets and right‑of‑use assets
Buildings, facilities and infrastructure
Machinery, equipment and transport
Other
Capital construction‑in‑progress
Total
Mining assets and mine development cost
Non‑mining assets and right‑of‑use assets
Buildings, facilities and infrastructure
Machinery, equipment and transport
Other
Capital construction‑in‑progress
Total
Cost
Balance at 1 January 2023
12,504
4,036
5,021
394
4,048
26,003
Additions
1,556
–
–
–
2,102
3,658
Transfers
–
376
484
98
(958)
–
Change in decommissioning provision
(140)
17
–
–
–
(123)
Additions of right‑of‑use assets and remeasurement of the lease liability
–
368
27
10
–
405
Disposals
(99)
(22)
(142)
(8)
(23)
(294)
Other
(1)
14
14
(42)
12
(3)
Effect of translation to presentation currency
(2,796)
(894)
(1,025)
(91)
(913)
(5,719)
Balance at 31 December 2023
11,024
3,895
4,379
361
4,268
23,927
Additions
1,298
–
–
–
2,035
3,333
Transfers
–
380
589
56
(1,025)
–
Change in decommissioning provision
(5)
280
–
–
–
275
Additions of right‑of‑use assets and remeasurement of the lease liability
–
14
27
6
–
47
Disposals
(72)
(31)
(78)
(53)
(88)
(322)
Other
(9)
12
(2)
(22)
14
(7)
Effect of translation to presentation currency
(1,396)
(496)
(501)
(39)
(618)
(3,050)
Balance at 31 December 2024
10,840
4,054
4,414
309
4,586
24,203
Additions
1,377
–
–
–
2,342
3,719
Transfers
–
586
557
65
(1,208)
–
Change in decommissioning provision
86
225
–
–
–
311
Additions of right‑of‑use assets and remeasurement of the lease liability
–
15
3
–
–
18
Disposals
(470)
(35)
(105)
(38)
(77)
(725)
Other
47
1
–
(3)
(40)
5
Effect of translation to presentation currency
3,311
1,183
1,229
88
1,441
7,252
Balance at 31 December 2025
15,191
6,029
6,098
421
7,044
34,783
Mining assets and mine development cost
Non‑mining assets and right‑of‑use assets
Total
Buildings, facilities and infrastructure
Machinery, equipment and transport
Other
Capital construction‑in‑progress
Mining assets and mine development cost
Non‑mining assets and right‑of‑use assets
Total
Buildings, facilities and infrastructure
Machinery, equipment and transport
Other
Capital construction‑in‑progress
Accumulated depreciation and impairment
Balance at 1 January 2023
(4,535)
(1,949)
(2,951)
(166)
(138)
(9,739)
Charge for the year
(498)
(214)
(390)
(65)
–
(1,167)
Disposals
90
19
107
8
19
243
Impairment loss, net
(48)
(22)
(46)
(1)
(60)
(177)
Other
1
–
(3)
3
–
1
Effect of translation to presentation currency
1,002
418
604
38
31
2,093
Balance at 31 December 2023
(3,988)
(1,748)
(2,679)
(183)
(148)
(8,746)
Charge for the year
(480)
(252)
(391)
(70)
–
(1,193)
Disposals
66
22
75
51
79
293
Impairment loss, net
(52)
(4)
(15)
–
(352)
(423)
Other
1
(6)
–
3
5
3
Effect of translation to presentation currency
510
218
312
23
61
1,124
Balance at 31 December 2024
(3,943)
(1,770)
(2,698)
(176)
(355)
(8,942)
Charge for the year
(531)
(386)
(454)
(60)
–
(1,431)
Disposals
434
29
82
36
63
644
Impairment loss, net
(163)
3
18
–
(174)
(316)
Other
(3)
–
1
1
–
(1)
Effect of translation to presentation currency
(1,206)
(530)
(744)
(51)
(115)
(2,646)
Balance at 31 December 2025
(5,412)
(2,654)
(3,795)
(250)
(581)
(12,692)
Carrying value
At 31 December 2023
7,036
2,147
1,700
178
4,120
15,181
At 31 December 2024
6,897
2,284
1,716
133
4,231
15,261
At 31 December 2025
9,779
3,375
2,303
171
6,463
22,091
Capitalised borrowing costs for the year ended 31 December 2025 amounted to USD 1,110 million (for the year ended 31 December 2024: USD 815 million and for the year ended 31 December 2023: USD 439 million).
The capitalisation rate used to determine the amount of borrowing costs was 13.83% per annum for the year ended 31 December 2025 (for the year ended 31 December 2024: 12.36% and for the year ended31 December 2023: 7.26%).
At 31 December 2025 mining assets and mine development cost included USD 4,217 million of mining assets under development (31 December 2024: USD 3,159 million and 31 December 2023: USD 3,097 million).
At 31 December 2025 non‑mining assets included USD 32 million of investment property (31 December 2024: USD 25 million and 31 December 2023: USD 29 million).
Impairment
At 31 December 2025, 2024 and 2023, the Group performed impairment analysis of its assets and did not identify any indicators of economic impairment of assets, except as described below.
During the year ended 31 December 2024, the Group announced reconfiguration of production facilities in Norilsk after 2027. As a result, the Group revised the baseline scenario for the copper production chain configuration as well as recoverable amounts of certain capital construction‑in‑progress assets and recognised an impairment loss of USD 311 million in respect of certain individual assets in the consolidated income statement for the year ended 31 December 2024. At 31 December 2025 no additional impairment of individual capital construction‑in‑progress assets of the copper production chain was recognised.
During the year ended 31 December 2024, the Group also recognised an increase of the decommissioning provision relating to the above‑mentioned reconfiguration (Note 26). During the year ended 31 December 2025, this provision was further revised upward (Note 26) and its timing was also revised up to 2034, which were together assessed as an indicator of the economic impairment of the related non‑current assets and the impairment test was conducted. As at 31 December 2025 carrying value of the copper production chain was USD 512 million (at 31 December 2024: USD 363 million).
The most significant assumptions used to estimate value in use of the non‑current assets of the copper production chain at 31 December 2025 were as follows:
Estimates were performed based on discounted cash flows expected to be generated by the production unit through 2028. Future сash flows were projected based on the budgeted amounts of production and sales volumes;
Production volumes were forecast based on internal production reports and management’s assumptions regarding future production levels including its gradual decrease from the level of 2025 by the end of the forecast period;
Prices of products were estimated based on forecast commodity prices: nickel 15 341 – 17 036 USD per ton, copper 10 901 – 11 048 USD per ton, platinum 1 491 – 1 593 USD per troy ounce, palladium 1 221 – 1 333 USD per troy ounce;
Inflation indices and forecast foreign currency exchange rates were derived from publicly available sources. Forecast inflation rate was within 3.93 — 5.00%, USD/RUB exchange rate was within the range of 90.3 to 102.0;
A pre‑tax nominal discount rate of 24.39% was calculated based on the weighted average cost of capital and represented management’s estimates of the risks specific to the production unit.
The recoverable amount of the production unit estimated using the above assumptions exceeded the сarrying value of its non‑current assets as at 31 December 2025. However, this result was sensitive to changes in key assumptions (primarily, the Russian rouble exchange rate and market prices for copper and palladium). The sensitivity of the estimate at the reporting date to changes in assumptions which may result in its decrease below the carrying value of the non‑current assets is presented below:
RUB 20% strengthening against USD
Decrease in metal prices by 10%
Decrease in the recoverable amount
341
117
As of 31 December 2020 the Group fully impaired its ore mining and processing operation on the Kola Peninsula. At 31 December 2025, 2024 and 2023, the Group did not identify indicators of a significant increase in the recoverable amount and recognised further impairment of additions to property, plant and equipment of these operations in Impairment of non‑financial assets in the consolidated income statement (for the year ended 31 December 2025: USD 94 million, for the year ended 31 December 2024: USD 68 million and for the year ended 31 December 2023: USD 26 million).
In April 2023, the Group announced reconfiguration of its mining operations on the Kola Peninsula in order to increase efficiency and accelerate the development of mining capacities, as well as termination of a certain outdated mining facility till the end of 2024. As a result, in 2023 the Group revised the amount of the decommissioning obligations and recognised an increase in the provisions for the reconfiguration of mining facilities in the amount of USD 7 million (included in Other provisions – See Note 26).
During the year ended 31 December 2023, the Group identified indicators of impairment and performed the impairment analysis of assets related to tourism and sports development projects in the regions where the Group operates. As a result, the recoverable amount of these assets was revised and the impairment loss in the amount of USD 53 million was recognised in Impairment of non‑financial assets in the consolidated income statement for the year ended 31 December 2023. At 31 December 2024, the Group identified indicators of additional impairment of these assets and recognised USD 10 million in Impairment of non‑financial assets in the consolidated income statement for the year ended 31 December 2024. At 31 December 2025 the Group identified indicators of increase of the recoverable amount of these assets. As a result, a gain on the partial reversal of impairment in the amount of USD 6 million was recognised in Impairment of non‑financial assets in the consolidated income statement for the year ended 31 December 2025.
For the year ended 31 December 2025, the Group revised certain investment projects and as a result recognised an impairment loss of USD 111 million.
For the year ended 31 December 2025, the Group recognised impairment loss in respect of certain individual assets of property, plant and equipment in the amount of USD 117 million (for the year ended 31 December 2024: impairment loss in respect of certain individual assets of property, plant and equipment in the amount of USD 34 million and for the year ended 31 December 2023: impairment loss in the amount of USD 98 million).
Right‑of‑use assets
Buildings, facilities and infrastructure
Machinery, equipment and transport
Other
Total
Buildings, facilities and infrastructure
Machinery, equipment and transport
Other
Total
Balance at 1 January 2023
170
36
20
226
Additions of right‑of‑use assets and remeasurement of the lease liability
368
27
10
405
Disposals
(1)
–
–
(1)
Impairment loss, net
(2)
–
–
(2)
Depreciation
(36)
(6)
(6)
(48)
Effect of translation to presentation currency
(74)
(8)
(5)
(87)
Balance at 31 December 2023
425
49
19
493
Additions of right‑of‑use assets and remeasurement of the lease liability
14
27
6
47
Disposals
(1)
–
–
(1)
Impairment loss, net
–
(1)
–
(1)
Depreciation
(35)
(7)
(6)
(48)
Effect of translation to presentation currency
(48)
(8)
(2)
(58)
Balance at 31 December 2024
355
60
17
432
Additions of right‑of‑use assets and remeasurement of the lease liability
15
3
–
18
Disposals
(1)
–
–
(1)
Depreciation
(36)
(8)
(7)
(51)
Effect of translation to presentation currency
104
17
5
126
Balance at 31 December 2025
437
72
15
524
15. Investments in significant subsidiaries
Subsidiaries by reportable segments
Nature of business
Effective % held
31 December 2023
31 December 2024
31 December 2025
Subsidiaries by reportable segments
Nature of business
Effective % held
31 December 2023
31 December 2024
31 December 2025
GMK Group
Gas extraction
100
100
100
Production of spare parts
100
100
100
Repairs
100
100
100
Electricity production and distribution
100
100
100
Construction
100
100
100
Rental of property
100
100
100
Gas transportation
100
100
100
South Cluster
Ore mining and processing
100
100
100
Kola Division
Metallurgy
100
100
100
Repairs
100
100
100
Mining and metallurgy
100
100
100
GRK Bystrinskoye
Ore mining and processing
50.01
50.01
50.01
Geological works and construction
100
100
100
Other non‑metallurgical
Distribution
100
100
100
Airport
100
100
100
River shipping operations
100
100
100
Distribution
100
100
100
Supplier of fuel
100
100
100
Research
100
100
100
Distribution
100
100
100
16. Investments in associates and joint ventures
The carrying amount of investments in associates and joint ventures is presented in the table below:
Investments in joint ventures
Investments in associates
Total
Investments in joint ventures
Investments in associates
Total
At 1 January 2023
–
8
8
Investments in associates and joint ventures
71
–
71
Share of losses of associates and joint ventures
–
(1)
(1)
Effect of translation to presentation currency
–
(2)
(2)
At 31 December 2023
71
5
76
Additional investments in associates and joint ventures
131
–
131
Share of losses of associates and joint ventures
(6)
–
(6)
Effect of translation to presentation currency
(19)
(1)
(20)
At 31 December 2024
177
4
181
Additional investments in associates and joint ventures
128
–
128
Share of (losses)/profits of associates and joint ventures
(21)
3
(18)
Effect of translation to presentation currency
59
1
60
At 31 December 2025
343
8
351
At 31 December
2023
2024
2025
At 31 December
2023
2024
2025
The Group’s share in contractual capital commitments of the Group`s joint ventures, including those funded by the Group’s obligations to finance joint ventures,
242
155
66
including those funded by the Group’s obligations to finance joint ventures
167
130
66
Additional Group’s obligations to finance joint ventures
–
–
51
17. Other taxes
At 31 December
2023
2024
2025
At 31 December
2023
2024
2025
Taxes receivable
Value added tax recoverable
392
299
406
Advance payments of other taxes
17
34
85
409
333
491
Less: impairment of value added tax recoverable
(5)
(5)
(6)
Other taxes receivable and other taxes payable subject to offset on a unified taxpayer account
(60)
(36)
(45)
Other taxes receivable
344
292
440
Taxes payable
Social security contributions
96
66
92
Value added tax
82
91
137
Mineral extraction tax
67
59
89
Property tax
20
18
29
Other
67
46
37
Other taxes receivable and other taxes payable subject to offset on a unified taxpayer account
(60)
(36)
(45)
Other taxes payable
272
244
339
Each subsidiary of the Group in the Russian Federation calculates the amount of a single tax payment payable to the budget taking into account the offset of taxes receivable and taxes payable. Other taxes receivable and other taxes payable are presented on a net basis for each Russian subsidiary of the Group in the consolidated statement of financial position. Income tax payable or income tax receivable of each subsidiary of the Group are presented separately in the consolidated statement of financial position in accordance with IFRS.
Taxes receivable and taxes payable including income tax after offset on a unified taxpayer account of each subsidiary of the Group registered in the Russian Federation, are presented below.
At 31 December
2023
2024
2025
Other taxes receivable
344
292
440
Income tax receivable
101
38
17
Income tax and taxes other than income tax subject to offset on a unified taxpayer account
(42)
(48)
(18)
Taxes receivable (including income tax) after offset of taxes payable on a unified taxpayer account
403
282
439
Other taxes payable
272
244
339
Income tax payable
7
49
59
Income tax and taxes other than income tax subject to offset on a unified taxpayer account
(42)
(48)
(18)
Taxes payable (including income tax) after offset of taxes receivable on a unified taxpayer account
237
245
380
18. Inventories
At 31 December
2023
2024
2025
Work‑in‑process and semi‑products
1,640
1,312
1,730
Refined metals and other metal products
1,194
1,027
1,175
Less: allowance to net realisable value for finished goods and work‑in‑process
(79)
(69)
(88)
Total metal inventories
2,755
2,270
2,817
Materials and supplies
1,123
903
1,135
Less: allowance for obsolete and slow‑moving items
(61)
(59)
(58)
Materials and supplies, net
1,062
844
1,077
Inventories
3,817
3,114
3,894
At 31 December 2025 a part of the metal semi‑product stock in the amount of USD 248 million net of impairment in the amount of USD 152 million was presented in other non‑current assets in line with the Group’s production plans (31 December 2024: USD 169 million net of impairment of USD 100 million and 31 December 2023: USD 183 million net of impairment of USD 101 million).
At 31 December 2025 the Group recognised an allowance to net realisable value in respect of metal by‑products in stock in the amount of USD 14 million (31 December 2024: USD 21 million and31 December 2023: USD 17 million).
19. Trade and other receivables
At 31 December
2023
2024
2025
Trade receivables
666
1,305
1,028
Other receivables
207
167
244
873
1,472
1,272
Less: allowance for expected credit losses
(109)
(98)
(120)
Trade and other receivables, net
764
1,374
1,152
In 2025 the average credit period on metal sales varied from 0 to 90 days (in 2024 and 2023: from 0 to 30 days). Trade receivables were generally non‑interest bearing. The average credit period was primarily impacted by the reconfiguration of distribution channels from 2022 onwards as further referred to in Note 32 and the Group doesn`t expect any significant change in average credit period in the foreseeable future.
At 31 December 2025 trade and other receivables included USD 1,012 million of accounts receivable measured at fair value through profit or loss, Level 2 of fair value hierarchy (31 December 2024: USD 1,168 million and 31 December 2023: USD 500 million). The fair value was measured using the forward market price at the reporting date corresponding to the quotation period specified in the contract.
At 31 December 2025, 2024 and 2023 there were no material trade accounts receivable which were overdue or individually determined to be impaired.
The average credit period on sales of other products and services for the year ended 31 December 2025 was 36 days (for the year ended 31 December 2024: 36 days and for the year ended 31 December 2023: 37 days). No interest was charged on these receivables.
At 31 December 2025 debtors with a carrying value of USD 52 million (31 December 2024: USD 31 million and 31 December 2023: USD 31 million), were included in the Group’s other receivables that were past due but not impaired. Management of the Group believes that these amounts are recoverable in full.
The Group did not hold any collateral for accounts receivable balances.
Ageing of other receivables past due but not impaired was as follows:
At 31 December
2023
2024
2025
Less than 180 days
26
27
46
180‑365 days
5
4
6
31
31
52
Movement in the allowance for expected credit losses was as follows:
At 31 December
2023
2024
2025
Balance at 1 January
79
109
98
Change in allowance
54
12
(2)
Accounts receivable written‑off
(1)
(9)
(3)
Effect of translation to presentation currency
(23)
(14)
27
Balance at 31 December
109
98
120
During the year ended 31 December 2024, the Group recognised allowance for expected credit losses under certain contracts with foreign equipment suppliers for the total amount of USD 20 million due to low probability of recovery caused by the failure of suppliers and/or guarantor banks to meet their obligations (during the year ended 31 December 2023: USD 37 million).
20. Cash and cash equivalents
At 31 December
2023
2024
2025
At 31 December
2023
2024
2025
Current accounts
RUB
71
56
127
USD
659
354
236
CNY
653
510
423
EUR
133
100
122
other
45
52
36
Bank deposits
RUB
134
525
1,048
USD
283
16
42
CNY
102
181
–
other
48
–
–
Other cash and cash equivalents
RUB
2
4
6
USD
5
2
–
CNY
4
19
63
other
–
3
3
Total
2,139
1,822
2,106
Interest income on bank deposits is recognised in Income from investments, net in the consolidated income statement.
Other cash and cash equivalents primarily included cash in transit.
21. Disposal of subsidiaries, joint ventures, joint operations and associates
In December 2025, the Group disposed of its share in the Professional Basketball Club CSKA.
In July 2025, the Group disposed of its share in the Nkomati joint operation, which ceased operations in 2021. The net liabilities of the disposed share in the joint operation amounted to USD 54 million and at the date of disposal primarily consisted of the decommissioning liabilities. The gain on disposal of USD 37 million was recognised in Gain on disposal of subsidiaries, joint ventures, joint operations and associates in the consolidated income statement for the year ended 31 December 2025. The net cash outflow from the disposal of the share in Nkomati is recognised in the consolidated statement of cash flows.
In February 2025, the Group disposed of a trading subsidiary for a consideration of USD 14 million. The net assets of the disposed subsidiary amounted to USD 11 million at the date of disposal. Gain from disposal in the amount of USD 3 million was recognised in Gain on disposal of subsidiaries, joint ventures, joint operations and associates in the consolidated income statement for the year ended 31 December 2025. Net cash outflow from disposal of the subsidiary was recognised in the consolidated statement of cash flows. The Group derecognised trade receivables from third parties and recognised the trade receivables from the disposed subsidiary in approximately equal amounts.
On 6 July 2023, the Group sold its interest in the trading subsidiary Norilsk Nickel USA, Inc. for a consideration in the amount of USD 8 million. The net assets of the disposed subsidiary in the amount of USD 44 million at the date of disposal primarily included refined metals stock recognised at production cost in the amount of USD 29 million, as well as other assets in the amount of USD 15 million. Gain on disposal in the amount of USD 30 million was recognised in Gain on disposal of subsidiaries, joint ventures, joint operations and associates in the consolidated income statement, including the recognition of receivables for the supply of refined metals from Norilsk Nickel USA, Inc. in the amount of USD 66 million. Net cash inflow from disposal of the subsidiary was recognised in the consolidated statement of cash flows.
22. Share capital and dividends
Authorised and issued ordinary shares
At 31 December 2025 and 31 December 2024 the number of the Group’s authorised and issued shares amounts to 15,286,339,700 (31 December 2023: 152,863,397).
In December 2023, an extraordinary General meeting of shareholders of the Company decided to implement a 100‑for‑1 split of the Company’s ordinary shares in order to increase their attractiveness to investors and their liquidity on the Moscow Stock Exchange.
The split of shares was completed on 4 April 2024. As a result of the split, one share with a nominal value of 1 rouble was split into 100 shares of the same category with a nominal value of 1/100 of a rouble (1 kopeck) each.
Earnings per share
For the year ended 31 December 2023
For the year ended 31 December 2024
For the year ended 31 December 2025
Adjusted for split
Not adjusted for split
Basic and diluted earnings per share (US Dollars per share):
0.156
15.596
0.086
0.127
The earnings and weighted average number of outstanding shares used in the calculation of basic and diluted earnings per share are as follows:
For the year ended 31 December 2023
For the year ended 31 December 2024
For the year ended 31 December 2025
Profit for the year attributable to shareholders of the parent company (USDmln)
2,384
1,313
1,947
Weighted average number of shares outstanding
For the year ended 31 December 2023
For the year ended 31 December 2024
For the year ended 31 December 2025
Adjusted for split
Not adjusted for split
Shares outstanding at 1 January
15,286,339,700
152,863,397
15,286,339,700
15,286,339,700
Shares outstanding 31 December
15,286,339,700
152,863,397
15,286,339,700
15,286,339,700
Weighted average number of issued ordinary shares
15,286,339,700
152,863,397
15,286,339,700
15,286,339,700
The number of authorised and issued shares has been adjusted for a proportional change in their number, as if the split of shares had been completed at the beginning of the earliest period presented.
American Depositary Receipts (ADRs)
On 28 April 2023, the term of permission of the Government Commission for the Control of Foreign Investments in the Russian Federation to continue trading of ADRs certifying the rights to the Company’s shares outside the Russian Federation lapsed. In accordance with clause 5 of Article 6 of Federal Law No. 114‑FZ On Amendments to the Federal Law On Joint‑Stock Companies and Certain Legislative Acts of the Russian Federation dated 16 April 2022, starting that date the Company’s shares, which remain accounted for on depo accounts of depository programs are not vested with voting rights for holders, not considered for counting votes. ADR holders retain the right to surrender their ADRs in exchange for obtaining the Company’s shares. The foreign issuing bank closed the conversion of ADRs into Company’s shares with the date of opening currently being unknown. The auto‑conversion of depository receipts recorded in Russian depositories was carried out in June‑July 2025 in accordance with the decision of the Board of Directors of the Central Bank of the Russian Federation dated 6 June 2025 “On establishing the procedure for automatic conversion of securities of foreign issuers certifying rights in respect of shares of Russian issuers into shares of Russian issuers”. In accordance with the procedure established by the Federal Law “On Joint Stock Companies” for the unclaimed dividends, they may be claimed by those who were ADR holders as at 28 April 2023 and who received the Company’s shares upon conversion of the ADRs belonging to them. Accordingly, dividends declared but not remitted to holders of ADRs remain on demand by recipients for a period set by the law and are presented as dividends payable in the consolidated statement of financial position, as described below. The period, during which a holder may claim unremitted dividends, begins on the day the Company`s shares are credited to the holder’s personal account (depo account) upon surrender (conversion) of their ADRs.
On 23 May 2023, the ADRs were removed from the list of securities admitted to trading on the London Stock Exchange. According to the latest information available to the Group, the percentage of Company`s shares remaining on depo accounts of depository programs was 5.15% of the share capital of the Company as at 31 December 2025.
Dividends
Dividends declared and paid in Russian roubles were translated to US dollars using prevailing USD/RUB rates at the declaration date or payment date, respectively, as presented in the table below.
Dividends for the period
Declaration period
Dividends declared
Dividends paid
Receipt of dividends not remitted to shareholders
Per share RUB
Per shareUSD
Total USD million
Payment period
Total USD million
Total USD million
9 months 2023
December 2023
915.33
9.87
1,508
January – February 2024
1,480
16
Dividends declared per share in the table above are shown without taking into account the effect of the split of shares.
Dividends payable include dividends payable of the parent company and dividends payable to non‑controlling interest owners.
Dividends of the parent company on demand by recipients are presented in the table below:
At 31 December
2023
2024
2025
Dividends on demand by recipients declared for the period:
9 months 2023
1,560
108
136
12 months 2021
359
315
–
other periods
5
3
–
Dividends of the parent company payable
1,924
425
136
At 31 December 2025, dividends for 9 months 2023 were not remitted primarily to holders of ADRs on the basis of Article 6 of Federal Law No. 114‑FZ dated 16 April 2022 On Amendments to the Federal Law “On Joint‑Stock Companies” and certain legislative acts of the Russian Federation.
Dividends for 9 months 2023 that had not been remitted to shareholders and thus had been received by the Company remained on demand and were subsequently remitted to shareholders upon their applications: during year ended 31 December 2025 in the amount of USD 3 million (in February–December 2024: less than USD 1 million).
At 31 December 2024 and 2023, annual dividends for 2021 were not remitted primarily to holders of ADRs due to restrictions placed by the Decree the President of the Russian Federation No. 95at 5 March 2022 and the decision of the Board of Directors of the Central Bank of the Russian Federation at 10 June 2022.
On 3 June 2025 the three‑year period to claim the dividends declared for 12 months 2021 expired. In accordance with clause 9 of article 42 of Federal Law “On Joint Stock Companies” the obligation to pay declared and unclaimed dividends terminates upon the expiration of this period. Duringthe year ended 31 December 2025 unclaimed dividends for the period of 12 months 2021 were recovered to the retained earnings of the Company and recognised in equity.
At 31 December 2025 dividends payable included dividends due to non‑controlling interest owners in the amount of USD 103 million (at 31 December 2024: USD 296 million and 31 December 2023: none).
23. Non‑controlling interest
At 31 December 2025, 2024 and 2023 aggregated financial information relating to the subsidiary, LLC “GRK “Bystrinskoye”, that has material non‑controlling interest, before any intra‑group eliminations, is presented below:
At 31 December
2023
2024
2025
Non‑current assets
981
886
1,188
Current assets
1,537
2,310
3,084
Non‑current liabilities
(72)
(120)
(105)
Current liabilities
(68)
(753)
(770)
Net assets
2,378
2,323
3,397
Net assets attributable to non‑controlling interest
1,189
1,162
1,698
For the year ended 31 December
2023
2024
2025
For the year ended 31 December
2023
2024
2025
Net profit for the year
971
1,001
1,001
Other comprehensive income/(loss) for the year
(494)
(328)
734
Total comprehensive income for the year
477
673
1,744
Profit attributable to non‑controlling interest
486
500
505
Other comprehensive income/(loss) attributable to non‑controlling interest
(247)
(164)
367
For the year ended 31 December
2023
2024
2025
For the year ended 31 December
2023
2024
2025
Cash flows from operating activities
737
849
1,370
Cash flows (used in)/from investing activities
310
(996)
(643)
Cash flows used in financing activities
(977)
–
(714)
Net increase/(decrease) in cash and cash equivalents
70
(147)
13
24. Loans and borrowings
Currency
Fixed or floating interest
Average nominal % rate during the year ended 31 December
Maturity at 31 December
At 31 December
2023
2024
2025
2025
2023
2024
2025
Currency
Fixed or floating interest
Average nominal % rate during the year ended 31 December
Maturity at 31 December
At 31 December
2023
2024
2025
2025
2023
2024
2025
Unsecured loans
Loan agreements with contractual maturity of less than 12 months
RUB
floating
11.14%
17.80%
22.67%
2026
1,226
503
7
RUB
fixed
12.00%
–
–
–
3
–
–
Unsecured loans
Loan agreements with contractual maturity of more than 12 months
USD
floating
6.44%
6.75%
5.75%
2026–2028
2,679
571
159
RUB
floating
11.92%
19.40%
–
–
1,558
3,735
–
EUR
floating
4.14%
4.63%
3.22%
2026–2028
17
13
11
CNY
floating
–
11.40%
2.40%
2027
–
144
156
CNY
fixed
–
–
7.15%
2027
–
–
428
Total loans
5,483
4,966
761
Bonds
USD
fixed
2.98%
2.68%
7.03%
2026–2029
1,746
998
4,317
CNY
floating
3.69%
3.52%
3.15%
2026
700
660
23
CNY
fixed
3.95%
3.95%
7.28%
2026–2027
560
528
2,280
RUB
fixed
8.48%
9.75%
–
–
556
245
–
RUB
floating
12.41%
19.07%
20.90%
2028–2029
667
2,549
3,315
Total bonds
4,229
4,980
9,935
Total
9,712
9,946
10,696
Less: current portion due within twelve months
(4,335)
(2,834)
(3,109)
Non‑current loans and borrowings
5,377
7,112
7,587
The Group is obliged to comply with a number of restrictive financial and other covenants, including maintaining certain financial ratios and restrictions on pledging and disposal of certain assets. At 31 December 2025, 2024 and 2023 the Group fulfills its obligations on loans and borrowings in accordance with loans and bonds transactional documentation. The Group confirms its intentions to fulfill its obligations on loans and borrowings in full on time and comply with covenants and does not expect their violation for at least 12 months after the reporting date.
At 31 December 2025, 2024 and 2023 loans and borrowings were not secured by any collateral.
In 2023–2025 all loans were raised on market terms existing at the drawdown dates reflecting such factors as the currency of the debt, expected maturities, changes in the key rate and credit risks inherent to the Group. The Group did not use collateral and did not assume any financial obligations to lenders other than servicing the debt.
Loans
During the year ended 31 December 2025 the Group received a long term floating rate rouble loan from an unrelated party in the amount of USD 273 million (at the USD/RUB exchange rate effective as of the drawdown date) and repaid loans in the amount of USD 4,578 million (at the USD/RUB exchange rate effective as of the repayment date) ahead of schedule in full. In 2024 the Group received a floating rate rouble loan from an unrelated party in the amount of USD 2,504 million (at the USD/RUB exchange rate effective as of drawdown date) with maturity in 2028. In 2023 the Group received floating rate rouble loans from unrelated parties in the amounts of USD 1,699 million and USD 1,092 million (at the USD/RUB exchange rates effective as of drawdown dates) with maturity in 2028 and 2024, respectively. The lenders can use various instruments to fund their own activities, including issuing bonds to an unlimited range of qualified investors.
Bonds
From March to August 2025 the Group issued several US dollar‑denominated traded five‑year bonds on the Moscow Exchange (MOEX) in the total amount of USD 2,975 million with an embedded put option in 2026 and 2027. In September 2025 the Group issued US dollar‑denominated traded bonds on the MOEX in the amount of USD 850 million with maturity in 2029.
From June to November 2025 the Group issued several five‑year yuan‑denominated traded bonds on the MOEX in the amount of USD 2,235 million at the USD/CNY exchange rates effective as of the issuance date with an embedded put option in 2026 and 2027.
In April 2025 the Group issued rouble‑denominated traded bonds on the MOEX in the amount of USD 3,422 million at the USD/RUB exchange rates effective as of the issuance date with maturity in 2028.
From July to October 2025 the Group repaid rouble‑denominated traded bonds in the amount of USD 3,907 million (at the USD/RUB exchange rate effective as of the repayment date) ahead of schedule.
In October and March 2024, the Group issued two rouble‑denominated traded bonds on the Moscow Exchange (MOEX) in the amounts of USD 1,041 million and USD 1,078 million at the USD/RUB exchange rates effective as of the issuance dates.
In May 2023 the Group issued rouble‑denominated traded bonds on the Moscow Exchange (MOEX) in the amount of USD 748 million at the USD/RUB exchange rates effective as of the issuance date.
In accordance with the requirements of Presidential Decree No. 430 dated 5 July 2022 (as amended on 22 May 2023) “On repatriation of foreign and Russian currency by the residents who participate in international economic activity“, on 20 and 22 December 2023 the Company placed two issues of replacement bonds, which were paid for on issue by transfer of Eurobonds or in cash with proceeds intended for the purchase of Eurobonds. Replacement bonds were placed in the amount of USD 316 million and USD 338 million in respect of Eurobond issues maturing in 2025 and 2026, respectively. The coupon rate, payment schedule, currency and maturity of the replacement bonds are identical to the Eurobond issues in respect of which they were placed. The amount of the Group’s debt as a result of the placement of replacement bonds has not changed.
25. Lease liabilities
Currency
Weighted‑average borrowing rate applied to lease liabilities outstanding at 31 December, %
Maturity
At 31 December
2023
2024
2025
2023
2024
2025
Currency
Weighted‑average borrowing rate applied to lease liabilities outstanding at 31 December, %
Maturity
At 31 December
2023
2024
2025
2023
2024
2025
Lease liabilities
RUB
10.07%
11.33%
11.69%
2026–2071
496
443
532
USD
3.37%
4.25%
6.28%
2027–2033
13
11
9
EUR
6.80%
6.95%
6.57%
2026–2050
11
8
7
Total lease liabilities
520
462
548
Less: current portion of lease liabilities
(54)
(81)
(147)
Non‑current lease liabilities
466
381
401
At 31 December 2025 lease liabilities with original term of lease payments in excess of 15 years amounted to USD 74 million (31 December 2024: USD 67 million and 31 December 2023: USD 85 million).
In May 2023, the Group received the railway infrastructure in Norilsk region for free use for a period of 49 years under the agreement with the Federal Property Management Agency with a corresponding obligation to incur expenditure in order to comply with the regulatory requirements for non‑public railways in the Russian Federation. The Group recognised this agreement in accordance with IFRS 16 Leases, therefore, the Group recognised a liability at the discounted value of cash outflows in the amount of USD 322 million and a corresponding right‑of‑use asset.
26. Provisions
Decommissioning
Environmental
Tax
Other
Total
Decommissioning
Environmental
Tax
Other
Total
Balance at 1 January 2023
736
350
4
6
1,096
Accruals
–
–
2
14
16
Utilisation
(50)
(8)
(1)
(6)
(65)
Change in estimates
(75)
(32)
(1)
(3)
(111)
Unwinding of discount
49
29
–
–
78
Effect of translation to presentation currency
(154)
(79)
–
(2)
(235)
Balance at 31 December 2023
506
260
4
9
779
Accruals
284
25
6
74
389
Utilisation
(48)
(15)
(1)
(3)
(67)
Change in estimates
(4)
(22)
–
(4)
(30)
Unwinding of discount
68
36
–
–
104
Effect of translation to presentation currency
(87)
(32)
(1)
(1)
(121)
Balance at 31 December 2024
719
252
8
75
1,054
Accruals
68
–
–
21
89
Utilisation
(60)
(12)
(4)
–
(76)
Disposal
(60)
–
–
–
(60)
Change in estimate
296
(22)
(5)
8
277
Unwinding of discount
138
44
–
14
196
Effect of translation to presentation currency
214
76
1
1
292
Balance at 31 December 2025
1,315
338
–
119
1,772
including the current portion:
At 31 December 2023
61
16
4
9
90
At 31 December 2024
73
17
8
75
173
At 31 December 2025
60
17
–
119
196
Fuel spill in Norilsk
On 29 May 2020 an incident occurred at the site of heat and power plant № 3 (HPP‑3) in the Kayerkan neighbourhood of Norilsk: diesel fuel storage reservoir was damaged through sudden failure of support posts, which resulted in approximately 21.2 kt of diesel fuel leakage. According to the Group’s assessment, the incident was caused by defects in design and construction as well as by unusually hot weather, which led to thawing of permafrost resulting in sinking of support posts.
The incident resulted in contamination of nearby water bodies and land in the area of leakage as well as damage to biological resources. The main stage of clean‑up works following the incident was completed in 2020. As at the reporting date the Group has mainly settled its liabilities with respect to compensation of damages to water bodies, soil, wildlife and broader environment. The Group’s liabilities with respect to compensation of damages to aquatic bioresources are described below.
On 29 July 2021, Yenisei territorial administration of the Federal Agency for Fishery (Rosrybolovstvo) filed a lawsuit for compensation of damages to aquatic bioresources for the total amount of RUB 58.65 billion (USD 810 million).
On 3 September 2021 during the court hearing, the parties agreed to proceed with the dispute settlement by negotiating an amicable agreement, which would include compensation in kind of the damage caused to aquatic life by artificially reproducing the affected fish species and releasing the fry to the water bodies.
Subsequently on 15 April 2022 the amount of claims was increased by the Federal Agency for Fishery to RUB 58.96 billion (USD 725 million).
On 22 July 2022, the court confirmed the amicable agreement between the parties. In accordance with the terms of the agreement the Group’s subsidiary will fully compensate damage to aquatic bioresources in kind by releasing the fry of different fish species (sturgeon, muksun, broad whitefish, vendace and nelma) to the water bodies of the Norilo‑Pyasinskoe lake and river system damaged by the incident in years 2033‑2050 (in accordance with a revised version of the amicable agreement: 2035‑2052). Up to 2033 (in accordance with a revised version of the amicable agreement: up to and including 2034), the Group’s subsidiary must implement annual early release of the fry of the Siberian sturgeon to the Yenisei river starting 2023.
In addition, in order to ensure scientific support of recovery measures the Group‘s subsidiary must provide financing of scientific research from 2023 to 2053 by Russian Federal Research Institute of Fisheries and Oceanography (VNIRO) with respect to assessment of the water bioresources conditions and their environment.
In June 2025, the Federal Agency for Fishery, VNIRO and the Group’s subsidiary signed a revised version of the amicable agreement. In August 2025 the revised version of the amicable agreement was approved by the Arbitration Court of the Krasnoyarsk Territory. The Group recognised decrease of the environmental provision through change in estimates in the amount of USD 64 million due to the revised version of the amicable agreement.
The key assumptions for determining the estimation of liabilities under the amicable agreement inherently contain a high degree of uncertainty, primarily due to the following: fishery research results, the cost of construction and operation of fish‑breeding infrastructure, the costs of operation at the water bodies of the Norilo‑Pyasinskoe lake and river system, the future fry purchase prices for aquatic bioresources, the possibility of achieving stable recovery of the population of the reproduced water bioresources, macroeconomic assumptions (including applicable inflation rates and risk‑free rates), and the material effect of the discount factor for longer terms.
At 31 December 2025, 2024 and 2023 the environmental provision in the consolidated statement of financial position was mainly represented by the total discounted amount of the provision in relation to the diesel fuel spill at HPP‑3 in Norilsk.
The amount of the provision is subject to a high degree of uncertainty and will be adjusted in the future reporting periods as new facts and circumstances arise, including the reassessment of forecast cost for environment remediation, changes in macroeconomic and other factors. However, to the best of its knowledge and in accordance with the requirements of law the Group does not expect new significant claims to be filed with respect to the HPP‑3 fuel spill in the future periods.
Decommissioning obligation for property, plant and equipment
During the year ended 31 December 2024 the Group recognised an additional decommissioning provision in the amount of USD 284 million due to the planned reconfiguration of production facilities in Norilsk after 2027 (see Note 14). During the year ended 31 December 2025, the Group reassessed future estimates of certain types of decommissioning costs and periods of decommissioning and increased this provision by USD 222 million to USD 649 million (see Note 14).
Key assumptions used in estimation of decommissioning obligations and environmental provisions were as follows:
At 31 December
2023
2024
2025
At 31 December
2023
2024
2025
Discount rates Russian entities
12.0% – 12.7%
13.7% – 18.1%
13.3% – 14.7%
Expected period of mine closure
from 2024 to 2125
from 2025 to 2125
from 2026 to 2125
Expected inflation over the period from 2026 to 2045
2.3% – 6.1%
3.2% – 6.9%
3.9% – 5.0%
Expected inflation over the period from 2046 onwards
2.1% – 2.2%
3.1% – 3.2%
4.3% – 4.4%
Present value of expected cost to be incurred for settlement of long‑term provisions was as follows:
At 31 December
2023
2024
2025
Due in:
years 2–5
332
472
566
years 6–10
169
238
660
years 11–15
84
83
214
years 16–20
36
22
34
Due thereafter
68
66
102
Total
689
881
1,576
27. Social liabilities
Social liabilities of the Group include social provisions and payables relating to social commitments of the Group. The table below represents changes in social liabilities of the Group during the years ended31 December 2025, 2024 and 2023, separately detailing changes in the provision in respect of the Comprehensive Social and Economic Development Plan for Norilsk (see the description below).
Comprehensive plan provision
Other provisions
Total
Comprehensive plan provision
Other provisions
Total
Balance at 1 January 2023
529
248
777
Accruals of provision and payables
–
235
235
Utilisation and payment
(34)
(238)
(272)
Change in estimates
(41)
(15)
(56)
Unwinding of discount
41
17
58
Reclassification
–
2
2
Effect of translation to presentation currency
(114)
(48)
(162)
Balance at 31 December 2023
381
201
582
Accruals of provision and payables
–
160
160
Utilisation and payment
(45)
(208)
(253)
Change in estimates
(53)
(4)
(57)
Unwinding of discount
48
22
70
Reclassification
–
2
2
Effect of translation to presentation currency
(40)
(17)
(57)
Balance at 31 December 2024
291
156
447
Accruals of provision and payables
–
162
162
Utilisation and payment
(49)
(201)
(250)
Change in estimate
123
(32)
91
Unwinding of discount
55
22
77
Reclassification
41
(45)
(4)
Effect of translation to presentation currency
91
41
132
Balance at 31 December 2025
552
103
655
including the current portion:
At 31 December 2023
93
114
207
At 31 December 2024
80
84
164
At 31 December 2025
156
43
199
The change in estimates and accruals of social liabilities in the table above are primarily presented as social expenses included in Other operating expenses, net (see Note 11).
Present value of expected cost to be incurred for settlement of long‑term social provisions was as follows:
At 31 December
2023
2024
2025
Due in:
Due in years 2–5
172
182
384
Due in years 6–10
115
95
72
Due in years 11–15
88
6
–
Total
375
283
456
Carrying value of social provisions is determined based on the discounted cash flows required to settle the present obligation. The discount rate was between 13.3% to 14.7% at 31 December 2025 (31 December 2024: 15.0% to 18.1%; 31 December 2023: 12.0% and 12.7%).
In 2017–2025, the Group entered into several agreements with the governments of the regions where it operates, namely the Zabaikalsky Territory, the Krasnoyarsk Territory and the Murmansk Region. These agreements imply the Group’s commitments in respect of the social and economic development of the regions, including the construction of social infrastructure facilities. At 31 December 2025 the provision recognised with respect to the above‑mentioned agreements in Social liabilities in the consolidated statement of financial position amounted to USD 47 million(31 December 2024: USD 69 million and 31 December 2023: USD 74 million).
During the year ended 31 December 2025, the Group also accrued USD 9 million (for the year ended31 December 2024: USD 7 million; for the year ended 31 December 2023: USD 25 million) of social provisions under various social programmes and contributions other than those referred to above.
Comprehensive Social and Economic Development Plan for Norilsk
In February 2021, the Group entered into a four‑party agreement with the Ministry for the Development of the Russian Far East and Arctic, the Krasnoyarsk Territory Government, and the Norilsk Municipality to implement comprehensive social and economic development programmes in Norilsk. In December 2021, the Government of the Russian Federation approved the Comprehensive Social and Economic Development Plan for Norilsk (the “Comprehensive Plan”), which includes a schedule of joint financial commitments of the Government of the Russian Federation, the Krasnoyarsk Territory Government, municipality of Norilsk and the Group for the social and economic development of the city up to 2035. The Comprehensive Plan covers housing renovation, the overhaul and modernisation of the city’s engineering and utilities infrastructure, construction, repair and reconstruction of social infrastructure facilities and resettlement of Norilsk and Dudinka citizens to areas with more favourable living conditions. The financial commitments of the Company for 2021–2035 amount to RUB 81.3 billion (USD 1,094 million at the USD exchange rate at 31 December 2021).
The Group recognised a provision in its consolidated income statement for the year ended 31 December 2021 at the present value of cash outflows in the amount of RUB 37.9 billion (USD 514 million at the USD exchange rate at the date of recognition).
In December 2025, an additional agreement was signed to the Agreement on Сomprehensive Social and Economic Development programmes in Norilsk up to 2035, according to which the schedule and the list of programmes were adjusted without changing the total amount of financial commitments. As a result, the list of programmes to be recognised in the social provisions in line with the Group’s accounting policy was expanded and the list of items to be recognised as property, plant and equipement was reduced, with an increase in the social provisions in the amount of USD 108 million at the USD exchange rate at the date of recognition (RUB 8 480 million).
In case of any changes to the nature, timing or amount of funding of particular programmes stipulated by the Comprehensive Plan during its implementation, the Group will update the amount of social provisions in its consolidated financial statements accordingly.
28. Trade and other payables
At 31 December
2023
2024
2025
Trade payables
422
370
542
Payables for acquisition of property,
plant and equipment
561
575
742
Other creditors
206
165
164
Advances received under contracts with customers
84
99
221
Total
1,273
1,209
1,669
The Group enters into contracts with suppliers on various payment terms depending on the value of the supply contract, market conditions and the supplier’s ability to raise financing. The contractual payment terms of short term payables for the acquisition of the property, plant and equipment except for warranty retention payables are presented below. The warranty retention is deducted from each payment as per terms of a respective supply contract with its final settlement due after the contract has been completed in full and the warranty period has expired. Warranty retention payables are not part of supply chain finance and amounted to USD 114 million at 31 December 2025 (at 31 December 2024: USD 137 million).
At 31 December 2025
payables that are not part of supply chain finance
payables assigned by suppliers under supply chain finance
Due within 3 months
270
–
Due from 3 to 11 months
8
–
Due in 12 months
37
313
Total
315
313
At 31 December 2024
payables that are not part of supply chain finance
payables assigned by suppliers under supply chain finance
Due within 3 months
220
–
Due from 3 to 11 months
4
–
Due in 12 months
4
210
Total
228
210
According to the Group`s information, the amount of payables financed by financial agents matched the total amount of payables assigned in their favor at the reporting date. During the year ended 31 December 2025 there were no significant non‑cash changes in the carrying amount of the payables assigned under supply chain finance.
29. Employee benefit obligations
Amounts recognised in the consolidated income statement in respect of employee benefits were as follows:
At 31 December
2023
2024
2025
Wages and salaries
2,003
1,966
2,361
Social security costs including pension contributions to the Social Fund of the Russian Federation
573
549
690
Corporate pension plans (non‑state pension fund)
9
10
12
Other
287
248
363
Total
2,872
2,773
3,426
Corporate pension plans from the table above relate to defined contribution plans.
At 31 December 2025 current employee benefit obligations in the consolidated statement of financial position included salary and wages payables in the amount of USD 95 million (at 31 December 2024 ‑ USD 70 million and at 31 December 2023 ‑ USD 77 million), and the remaining amount related mainly to provisions for the upcoming vacations of the Group’s personnel and provisions for the Group’s incentive programmes.
30. Related parties transactions and outstanding balances
Related parties include major shareholders and entities under their ownership and control; associates, joint ventures and joint operation, non‑state pension fund, transactions with which are disclosed in Note 29, and key management personnel. The Group defines major shareholders as shareholders, which have significant influence over the Group activities. The Company and its subsidiaries, in the ordinary course of their business, enter into various sale, purchase and service transactions with related parties. Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Transactions and outstanding balances are included in / excluded from the disclosure starting the date an entity has become / or ceased to be a related party, respectively. Information about additional investments in joint ventures is disclosed in Note 16.
Details of transactions between the Group and related parties are disclosed below:
Entities under ownership and control of the Group’s major shareholders
Associates, joint ventures and joint operation
For the year ended 31 December 2023
For the year ended 31 December 2024
For the year ended 31 December 2025
For the year ended 31 December 2023
For the year ended 31 December 2024
For the year ended 31 December 2025
Entities under ownership and control of the Group’s major shareholders
Associates, joint ventures and joint operation
For the year ended 31 December 2023
For the year ended 31 December 2024
For the year ended 31 December 2025
For the year ended 31 December 2023
For the year ended 31 December 2024
For the year ended 31 December 2025
Transactions with related parties
Purchase of assets and services and other operating expenses
(16)
(5)
(5)
(13)
(11)
(10)
Sales of goods and services and other income
1
1
1
12
10
4
Investing activities
Loans issued
–
–
–
(30)
(9)
(4)
Repayments of loans issued
–
–
–
27
9
4
Financing activities
Repayments of loans and borrowings
(225)
–
–
–
(7)
(25)
Proceeds from loans and borrowings
–
–
–
3
16
11
Entities under ownership and control of the Group’s major shareholders
Associates, joint ventures and joint operation
At 31 December 2023
At 31 December 2024
At 31 December 2025
At 31 December 2023
At 31 December 2024
At 31 December 2025
Outstanding balances with related parties
Assets
Accounts receivable
–
–
–
2
1
–
Liabilities
Accounts payable and lease liabilities
12
18
14
1
2
2
Loans and borrowings
–
–
–
3
11
–
During the year ended 31 December 2024 the Group declared dividends in the amount of USD 216 million to a related party, which is a non‑controlling interest owner (during the year ended 31 December 2023: USD 349 million).
At 31 December 2024, dividends payable included dividends payable to a related party which is a non‑controlling interest owner in the amount of USD 216 million, which were fully paid during the year ended 31 December 2025.
Transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.
Compensation of key management personnel
Key management personnel of the Group consists of members of the Management Board and the Board of Directors. For the year ended 31 December 2025 remuneration of key management personnel of the Group including salary and performance bonuses amounted to USD 77 million out of which long‑term remuneration amounted to USD 7 million (for the year ended 31 December 2024: USD 72 million out of which long‑term remuneration amounted to USD 8 million, and for the year ended 31 December 2023: USD 90 million, no long‑term remuneration for this period).
31. Commitments
Capital commitments
At 31 December 2025, contractual capital commitments excluding Group’s share in contractual capital commitments of the Group`s joint ventures (Note 16) amounted to USD 2,571 million (31 December 2024: USD 1,935 million and 31 December 2023: USD 2,292 million).
Leases
The Group is a party to a number of lease contracts with variable lease payments that do not depend on an index or market rental rates, and hence are not recognised as lease liabilities. At 31 December 2025 total future non‑discounted variable lease payments under such contracts with the maturity up to 2074 amounted to USD 1,309 million (31 December 2024: USD 252 million and 31 December 2023: USD 280 million).
32. Contingencies
Legal contingent liabilities
The Group has a number of legal contingent liabilities including matters arising from claims and disputes of a civil law and public law nature. At 31 December 2025 these liabilities amounted to USD 58 million (31 December 2024: USD 40 million and 31 December 2023: USD 4 million).
Taxation contingencies in the Russian Federation
The Russian Federation currently has a number of laws related to various taxes imposed by both federal and regional governmental authorities. Applicable taxes include value‑added (VAT), income tax, mandatory social security contributions to the Social Fund of the Russian Federation, mineral extraction tax and other levies. Tax returns, together with other legal compliance areas (for example, customs and currency control matters), are subject to review and investigation by government authorities, which are authorised by law to impose severe fines, penalties and interest charges. Generally, tax returns remain open and subject to inspection for a period of three years following the fiscal year. The Group’s primary assets are subject to the tax monitoring regime, which provides for a shorter tax inspection period of nine months following the fiscal year.
While the management of the Group believes that it has recognised adequate provisions for tax liabilities based on its interpretation of the relevant legislation, the risk remains that the tax authorities in the Russian Federation could take a different view with regard to interpretive issues. This uncertainty may expose the Group to additional taxation, fines and penalties.
In March 2022, amendments to the Russian tax legislation were adopted. According to them, foreign exchange gains are accounted for tax purposes in the reporting period, when the underlying asset or liability is settled. Starting from 1 January 2023, the same tax accounting rules apply to foreign exchange losses. In December 2022 amendments to the Russian tax legislation allowed an early adoption of the above tax treatment of foreign exchange losses for the year ended 31 December 2022 at a taxpayer’s option. The Group used this option. According to the Federal Law these tax accounting rules will apply up to 2027.
On 1 January 2023, amendments to the Tax code of the Russian Federation were adopted. According to them, each company of the Group located in the Russian Federation pays taxes in a single tax payment (STP) to a unified taxpayer account.
Russia has legislation on transfer pricing, which reflects the basic principles established by the Organisation for Economic Cooperation and Development (OECD). The impact of any additional taxation in relation to transfer pricing may be material to the consolidated financial statements of the Group. Yet, the probability of such additional taxation cannot be reliably assessed.
The transfer pricing rules provide for an obligation for the taxpayers to prepare transfer pricing documentation with respect to controlled transactions and stipulate the principles and mechanisms for accruing additional taxes and interest in case prices in the controlled transactions differ from the market level.
Current Russian transfer pricing legislation requires businesses to conduct transfer pricing analysis for the majority of cross‑border and major domestic inter‑company transactions. Starting 2019, transfer pricing control, as a general rule, is applied to domestic transactions only if both criteria are met: the parties apply different income tax rates, and the annual turnover of transactions between them exceeds RUB 1 billion (USD 13 million at RUB/USD rate at 31 December 2025).
In addition to performing transfer pricing audits, Russian tax authorities may also review prices used in intra‑group transactions. They may impose additional taxes if they conclude that taxpayers have received unjustified tax benefits as a result of those transactions.
In November 2023, amendments to the Tax Code of the Russian Federation introduced a mechanism for secondary adjustment of transfer pricing and provided for an additional withholding tax with respect to the tax base transferred outside Russia as a result of non‑compliance with established transfer pricing control rules. In addition, the amendments significantly increased tax penalties for transfer pricing offenses.
According to Russia’s Ministry of Finance, foreign states that take hostile actions against the Russian Federation, its legal entities and individuals have effectively stopped sharing information for tax purposes with the Russian Federation. It complicates tax control of pricing, including identification of the fact that parties to a transaction are related. The list of states and territories providing preferential tax treatment and/or not disclosing and sharing information on financial transactions (offshores) has been amended by including “unfriendly” states. Thereby transactions with counterparties from these countries may be recognised as controlled for tax purposes starting from 1 January 2024.
In August 2023 in accordance with the Presidential Decree the core provisions of 38 double taxation agreements between Russia and “unfriendly” countries were suspended. The suspension effectively leads to the application of standard withholding income tax rates as opposed to previously applied reduced rates in relation to the main types of passive and other income received by residents of these countries.
In 2023 the Russian Government’s Regulation introduced export customs duties on Group`s metal products for the period from 1 October 2023 to 31 December 2024. Unrefined or semi‑refined gold (including gold with a platinum electroplated coating) or gold powder were exempted from these duties by the Russian Government’s Decree.
On 20 December 2021, the OECD released Global Anti‑Base Erosion Model Rules (GloBE) under Pillar Two (GloBE\Pillar Two) to assist in the implementation of global minimum top‑up tax for multinational enterprises and address the tax challenges arising from the digitalisation and globalisation of the economy. Under these rules, multinational enterprises will have to pay additional income tax arising in the jurisdictions where they operate, if income in those jurisdictions is taxed at an effective tax rate below 15%. To this end, Pillar Two rules need to be adopted at the national level.
In 2023, the International Accounting Standards Board (IASB) published International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12 – Income Taxes).
The Group applies the exception with respect to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes in accordance with IAS12.
From 1 January 2026, the VAT rate in the Russian Federation will be increased from 20% to 22% according to Federal Law.
Environmental matters
The Group is subject to extensive federal, regional and local environmental controls and regulations in the countries where it operates. The Group’s operations result in air and water pollutant emissions, as well as generation and disposal of production waste. The Group recognises expenditure on negative environmental impact levies as other levies in Cost of metal sales.
The Group periodically evaluates its environmental provisions pursuant to the environmental legislation in the countries where it operates. Such provisions are recognised in the consolidated financial statements as and when obligating events occur.
The management of the Group believes that there are no material obligations for environmental damage other than those recognised in these consolidated financial statements. However, potential liabilities, which may arise due to changes in environmental laws and regulations, cannot be reliably estimated but may be material. The Group is unable to assess the timing or extent to which environmental laws and regulations may change. Such change, if it takes place, may require that the Group modernises its technological processes to meet more stringent statutory requirements.
Russian Federation risk
The Group’s operations are primarily located in the Russian Federation. Consequently, the Group is influenced by the economic and financial markets of the Russian Federation, which display the characteristics of an emerging market. The legal, tax and regulatory frameworks continue to develop, which poses a risk of their varying interpretations and frequent change. This, together with other legal and fiscal restrictions, creates additional challenges for entities operating in the Russian Federation.
Starting 2014, the United States of America, the European Union and some other countries have imposed and gradually expanded restrictive economic measures against a number of Russian individuals and legal entities. Starting February 2022, the above countries have been imposing additional stringent restrictive measures against the Russian Government, large financial institutions and other legal entities and individuals in Russia. In addition, restrictions were imposed on exports and imports of certain goods and business‑relevant services, including accounting, auditing, tax and management consulting and certain legal, engineering, architectural and IT consulting services, as well as aviation and maritime transportation sectors. In light of the imposed restrictive measures, a number of large international companies from the USA, the European Union and some other countries ceased, materially reduced or suspended their activities in the Russian Federation and business relationships with Russian citizens and legal entities. Moreover, there is a risk that further restrictive measures and similar types of pressure will be imposed. In response, the Russian Government has implemented a set of economic measures in order to secure and stabilise the Russian economy, as well as retaliatory restrictive measures, currency control measures, a number of key interest rate changes and other special economic measures.
The imposition and further tightening of the restrictive measures has led to an increased economic uncertainty, including the lowering of liquidity and high volatility in the equity markets, volatility of the Russian rouble exchange rates and key interest rate, a reduction in both local and foreign direct investment inflows, procedural difficulties in currency payments for Russian issuers and significant limitations in the availability of debt financing. In addition, many Russian companies are practically devoid of access to international stock and debt capital markets, thus having to look for alternative ways to raise financing and growing more dependent on the state support. The Russian economy is in the process of adaptation, involving the substitution of export markets that become unavailable, replacement of procurement and technology import markets, as well as changes in the logistics and production chains.
On 21 July 2022 and on 26 July 2022 the European Union and Great Britain respectively, introduced a ban against the import of gold of Russian origin on top of other restrictive measures.
On 16 December 2022, the European Union, among other restrictive measures, introduced a ban on investments in the mining industry in Russia and also banned the supply of various equipment, including industrial. At the same time in accordance with the European Union ruling these restrictive measures do not apply to mining and production of palladium, nickel, copper, cobalt, rhodium and iron ore.
On 29 June 2022, the United Kingdom imposed personal restrictions against Potanin V. O. These restrictions are mandatory within the UK and for all British citizens and legal entities registered in the UK. According to the advice of an external legal counsel and the management’s assessment, these restrictions do not expand to the Group and its subsidiaries. On 15 December 2022, OFAC updated Specially Designated Nationals and Blocked Persons List (SDN List) to include Potanin V. O. SDN list also included legal entities associated with one of the major shareholders. OFAC also stated that the restrictive measures do not apply to the Company. In the current geopolitical circumstances, as each counterparty doing business with the Group independently decides on the application of its own internal restrictions on interaction with Russian legal entities, the management has to assume that some counterparties might reconsider their trade, financial or other operations with the Group.
On 24 February 2023 the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) identified the mining and metallurgical sector of the Russian economy as a sector against which further sanctions may be imposed.
On 14 December 2023, the United Kingdom adopted amendments to the sanction legislation, which, among other things, established a ban on trade in a number of metals, which originate or are located in Russia. These restrictions are applicable to, among some other metals, nickel, copper and cobalt that are produced by the Group. Initially the UK Government published a Trade License authorizing UK persons to purchase warrants for Russian metals on international metal exchanges, provided that such trade didn`t involve physical delivery of such metals to the territory of the United Kingdom or to UK persons. On 12 April 2024, the United States and UK issued a joint statement and established a ban on the import of nickel, copper and aluminium of Russian origin into their territory, as well as a ban on the provision of services related to the purchase of these metals, including the issuance of warrants. As a part of this ban, the United Kingdom terminated a trade license, which caused an effective ban on trading on the London Metal Exchange of Russian metals produced after 12 April 2024.
On 12 June 2024, OFAC expanded the sanctions lists by targeting Russian financial infrastructure and adding to the SDN list such entities as The Moscow Exchange (MOEX), The National Clearing Center (NCC) and The Non‑Bank Credit Institution Joint Stock Company National Settlement Depository (NSD).
On 23 August 2024, OFAC expanded sanctions against Russia and included several support and service subsidiaries of the Group, as well as one mining subsidiary of the Group in the SDN list based on U.S. Presidential Decree No. 14024.
Other restrictive measures related to metals produced by the Group and the possible use of antidumping and compensatory instruments are considered for implementation in some “unfriendly” jurisdictions.
The Group believes that these sanctions should not affect its status as a reliable counterparty and will not significantly affect the Group’s operations.
The longer‑term effects of potential additional restrictive measures are difficult to determine. Still, they may have a significant impact on the Group`s business.
Supply and distribution channels reconfiguration
In 2022, most of suppliers fully withdrew from the Russian market while others suspended deliveries of goods and services to Russian legal entities. As a result, procurement from these suppliers has become unavailable to the Group. The Group has finished transition to alternative suppliers from Russia and other countries in 2025. However, such deliveries may take longer time due to complicated logistics and financial arrangements, which in turn affects the schedules of a number of investment projects and investment obligations.
The Group is also in the process of reconfiguring its distribution channels aimed at reducing sanctions risks in the processes of the Group’s products delivery and receipt of payments. This led to extended sales logistics chains, revision of the supply basis of the part of the Group`s metals and a higher concentration of the Group’s credit risk. Still, due to the active management of distribution and payment channels, finished goods inventories were stabilised and trade receivables balance was reduced.
Overall impact of risks and uncertainties on the Group’s financial position and financial results
These consolidated financial statements provide the management’s point of view on the level of impact of the current business environment in the Russian Federation on the Group’s operations and financial position. Taking into account the measures taken by the Group in respect of the risks stemming from imposed economic restrictions and overall changes in business environment, Group management does not expect an adverse impact on going concern of the Group for at least 12 months after 31 December 2025. The actual impact of the future business environment may differ from the management’s assessment.
The management will continue to monitor the situation closely and will implement necessary measures to mitigate negative consequences of possible future events and circumstances, as they occur.
33. Climate change
The Group acknowledges that climate change is one of the most significant and urgent global issues that poses high risks to the Group’s economic activities and society as a whole. The Group’s climate change vision is outlined in a number of key documents, including Environmental and Climate Change Strategy, Climate Change Policy and Environmental Policy.
The Group considers the impact of climate change on judgements and estimates made when preparing the Group’s consolidated financial statements. While not a primary judgment or estimate on its own, climate change could significantly influence various judgements and estimates made by the Group, particularly where these are reliant on longer‑term forecasts. Potential impacts of climate change on judgements and estimates relate to physical risks and transition risks and opportunities.
Physical risks
The Group is aware of and monitors climate change in the regions where it operates. This change is currently assessed more as a source of risks rather than opportunities. The Arctic regions of the Group operations are more vulnerable to risks due to the pace of climate change, which is higher than the global average, in particular related to mean temperature rise and permafrost degradation. Linear infrastructure facilities such as power grids and gas and water pipelines located in the permafrost areas are expected to be more affected by climate change risks.
In order to mitigate the effects of physical risks the Group has deployed a system to monitor the technical condition of buildings and structures located in permafrost areas and has been implementing measures to maintain and improve reliability of production facilities and infrastructure. In case the Group identifies risks related to stability of certain structure, the Group may be required to reassess useful economic life of respective assets and the associated decommissioning obligations.
As at the reporting date, the Group believes that there is no material impact of physical risks on the estimates used to prepare this consolidated financial statements.
Transition risks and opportunities
Climate‑related transition risks and opportunities arise from global efforts to transition to a lower‑carbon economy. Energy transition is one of the core instruments aiming to reduce greenhouse gas emissions and combat climate change. It refers to the global shift from fossil fuels to renewable energy sources, driven by government policies, international agreements like the Paris Agreement, and technological advancements in energy storage and efficiency.
The Group acknowledges that energy transition may lead to different trends on metal markets and therefore transition risks and opportunities may arise and indirectly impact the Group’s revenue through fluctuations in product prices. The Group expects stronger demand for nickel and copper as one of the key transition materials, driven by the growth of “green” energy and battery production. At the same time, there are long‑term expectations of decrease in demand for palladium, rhodium and platinum to some extent due to the replacement of internal combustion engine (ICE) vehicles with electric vehicles.
As the producer of diversified metals portfolio including metals tied to mature industries with a non‑zero carbon footprint as well as those linked to “green” technologies, the Group currently expects the effect of transition risks and opportunities related to change in demand for its products to be relatively neutral.
34. Financial risk management
Capital risk management
The Group manages its capital in order to safeguard the Group’s ability to continue as a going concern and to maximise the return to shareholders through the optimisation of debt (long and short‑term borrowings) and equity (share capital and retained earnings) structure.
Management of the Group regularly reviews its level of leverage calculated as the ratio of Net Debt to EBITDA to ensure that it is in line with the Group’s financial policy aimed at preserving investment grade credit ratings.
At 31 December 2025, 2024 and 2023 the Company maintained credit ratings from Russian rating agency Expert RA at ruAAA investment grade level. At 31 December 2025 and 2024 the Russian rating agency NCR also assigned the Group at AAA.ru investment grade level.
Financial risk factors and risk management structure
In the normal course of its operations, the Group is exposed to a variety of financial risks: market risk (including interest rate and currency risk), credit risk and liquidity risk. The Group has an explicit risk management structure aligned with internal control and analysis procedures that enable it to assess, evaluate and monitor the Group’s exposure to financial risks, including their change due to the current economic situation and imposition of restrictive economic measures.
Interest rate risk
Interest rate risk relates to changes in interest rates that could adversely impact the financial results of the Group. The Group’s interest rate risk arises from borrowings at floating rates.
In order to manage this risk, the Group forms the structure of debt portfolio by balancing loans and borrowings with fixed and floating interest rates. The Group also considers impact of this risk factor together with changes in the macroeconomic environment, particularly monetary policy of the Central Bank of the Russian Federation.
At 31 December 2025, the share of loans and borrowings of the Group with the rate linked to the key interest rate of the Central Bank of the Russian Federation and other rouble floating rates was 31.1% of the total amount of loans and borrowings (at 31 December 2024: 68.2% and at 31 December 2023: 35.5% (see Note 24)).
During the year ended 31 December 2023, the key interest rate of the Bank of Russia was increased from 7.5% to 16% by the end of December. During the year ended 31 December 2024 the key interest rate of the Bank of Russia was increased from 16% to 21% by the end of December. During the year ended 31 December 2025, key interest rate decreased from 21% to 16% by the end of December.
In 2023 a fundamental reform of major interest rate benchmarks was implemented globally, including the replacement of some interbank offered rates (IBORs) with alternative nearly risk‑free rates (referred to as ‘IBOR reform’). The Group’s unsecured US dollar‑denominated floating rate loans used USD LIBOR1M rates, which were published after 30 June 2023. The Group signed amendments to certain loan agreements to replace LIBOR rate with the alternative rate – Term Secured Overnight Financing Rate (Term SOFR) before USD LIBOR publication stop date and switched the remaining loan agreements with floating interest rates to the alternative rates in 2023.
Management believes that the Group’s exposure to interest rate risk fluctuations is at an acceptable level.
Currency risk
Currency risk relates to changes in the fair value or future cash flows of a financial instrument denominated in foreign currency because of changes in exchange rates.
The major part of the Group’s revenue and related trade accounts receivable are denominated and/or settled in US dollars and Chinese Yuans, while expenditure is primarily denominated in Russian roubles and therefore the Group is exposed to fluctuations of the USD and CNY exchange rates. Currency risk arising from other currencies is assessed by management of the Group as immaterial.
The currency risk is managed by analysis of currency position, efficiency control of currency exchange operations and the best possible matching of cash inflows and cash outflows denominated in the same currency, although the restrictive measures and Russia’s respective counter‑measures limit the efficiency and availability of the above mentioned instruments of the Group`s currency risk management.
Restrictive measures imposed by the USA, the EU and some other countries in 2022 with respect to the Central Bank of the Russian Federation and Russia’s international reserves as well as the counter‑measures of the Russian government and the Central Bank relating to capital flows controls and currency control led to an increased volatility of the rouble exchange rate. The USD/RUB exchange rate ranged from 76.09 roubles for 1 US Dollar to 103.44 roubles for 1 US Dollar during the year ended 31 December 2025 (during the year ended 31 December 2024: from 82.63 roubles for 1 US Dollar to 109.58 roubles for 1 US Dollar and during the year ended 31 December 2023: from 67.57 roubles for 1 US Dollar to 101.36 roubles for 1 US Dollar). Taking into account the exchange rates at 31 December 2025, 2024 and 2023, the Group preserves its financial stability.
On 12 June 2024, the United States introduced restrictive measures against the Moscow Stock Exchange, so exchange trading and settlements of derivatives in US dollars and Euros were suspended. Since 13 June 2024, the Central Bank of the Russian Federation has been setting the official exchange rates of US dollar and Euro against Russian rouble based on the results of interbank currency conversion transactions on the over‑the‑counter foreign exchange market as reported by the credit institutions. Since 27 December 2024, the Central Bank of the Russian Federation has been setting the official exchange rates of foreign currencies against Russian rouble based on combined data from the exchange and over‑the‑counter segments of the foreign exchange market in order to increase the representativeness of the official exchange rates.
At 31 December 2025, 2024 and 2023, the carrying amounts of monetary assets and liabilities, excluding cross‑currency interest rate swaps, denominated in foreign currencies other than functional currencies of the individual Group entities were as follows:
At 31 December 2023
At 31 December 2024
At 31 December 2025
USD
CNY
Other currencies
USD
CNY
Other currencies
USD
CNY
Other currencies
At 31 December 2023
At 31 December 2024
At 31 December 2025
USD
CNY
Other currencies
USD
CNY
Other currencies
USD
CNY
Other currencies
Cash and cash equivalents
879
759
226
352
710
155
228
486
161
Trade and other receivables
992
90
66
1,601
15
9
1,030
16
5
Other assets
2
–
15
11
29
11
10
1
–
Total assets
1,873
849
307
1,964
754
175
1,268
503
166
Trade and other payables
556
7
95
537
9
44
269
13
58
Loans and borrowings
4,425
1,260
17
1,569
1,332
13
4,476
2,887
11
Lease liabilities
13
–
11
11
–
8
9
–
7
Other liabilities
2
–
–
2
–
1
1
–
–
Total liabilities
4,996
1,267
123
2,119
1,341
66
4,755
2,900
76
Given that the Group exposure to the currency risk for the US Dollar and Chinese Yuan denominated net monetary liabilities is offset by the revenue from metal sales denominated and/or collected in relevant currencies, as well as the high correlation of the Chinese Yuan and the US Dollar, management believes that the Group’s exposure to the currency risk is at an acceptable level.
The sensitivity analysis of interest rate and currency risks
At the reporting date the Group’s monetary liabilities denominated in foreign currency exceed its corresponding assets. The table below shows a possible decrease in profit before tax from the remeasurement of the carrying value of the Group’s net monetary liabilities denominated in foreign currency. Base assumption is a 20% strengthening of foreign exchange rates against the Russian rouble relative to the exchange rates on that date.
Decrease of profit before tax for the year ended 31 December
2023
2024
2025
Interest rate risk
1 p.p.RUB rate increase impact
(35)
(68)
(33)
1 p.p.USD rate increase impact
(24)
(6)
(2)
1 p.p. CNY rate increase impact
(7)
(8)
(2)
Currency risk
USD 20% strengthening against RUB
(695)
(31)
(697)
CNY 20% strengthening against RUB
(84)
(117)
(479)
The sensitivity analysis is prepared including cross‑currency interest rate swap effects (for year ended 31 December 2023) and assuming that the amount of loans and borrowings at floating rates outstanding at the reporting date was outstanding for the whole reporting period.
Credit risk
Credit risk means that a debtor may default on its contractual obligations as they fall due resulting in a financial loss to the Group. Credit risk arises from cash and cash equivalents, bank deposits, uncollateralised trade and other receivables, as well as loans issued.
The Group mitigates the credit risk mainly through its allocation to a large number of counterparties and respective credit limits approval based on counterparties’ financial position analysis and uses, if possible, trade financing and insurance instruments, bank guarantees and documentary forms of settlement. The Group believes that credit risk remains at an acceptable level, taking into account ongoing measures to reconfigure sales channels (see Supply and distribution channels reconfiguration in the Note 32).
To analyse counterparty solvency, the Group uses information from credit rating agencies about the counterparty’s assigned credit ratings and projections for its changes; should such information be lacking, financial stability and overall creditworthiness is assessed by calculating financial indicators and analysing the counterparty’s financial statements for several reporting periods.
The top‑5 outstanding balances of сash and cash equivalents with the financial institutions as well as the top‑5 outstanding balances of trade and other receivables from customers (sorted independently at each reporting date) are presented below. In accordance with the conservative liquidity management policy the Group’s cash and cash equivalents are placed at Russian and international credit and financial institutions, which mostly had сredit rating according to the national scale Expert RA not lower than RUA+ for Russian banks, on the international Fitch scale not lower than BB‑ for international banks at 31 December 2025 and 31 December 2024 and 2023.
Outstanding balance at 31 December
2023
2024
2025
Outstanding balance at 31 December
2023
2024
2025
Cash and cash equivalents
Bank A
616
423
629
Bank B
476
231
354
Bank C
183
221
230
Bank D
137
175
226
Bank E
134
168
115
Other
593
604
552
Total
2,139
1,822
2,106
Trade and other receivables
Customer A
93
875
855
Customer B
90
105
39
Customer C
86
64
28
Customer D
65
39
28
Customer E
46
36
22
Other
384
255
180
Total
764
1,374
1,152
Management of the Group believes that the credit risk associated with cash and cash equivalents and trade and other receivables is at an acceptable level due to the high credit rating of the banks where these cash and cash equivalents are placed, as well as the implementation of measures to manage the credit risk associated with counterparties the Group interacts with.
At 31 December 2025, the Group does not expect a significant increase in expected credit losses on trade and other receivables and other financial assets.
Information on sales to the Group’s customers is presented below:
For the year ended 31 December 2023
For the year ended 31 December 2024
For the year ended 31 December 2025
Revenue USD million
%
Revenue USD million
%
Revenue USD million
%
Largest customer
1,292
9
2,126
17
2,925
21
Next 9 largest customers
4,904
34
4,623
37
5,521
40
Total 10 largest customers
6,196
43
6,749
54
8,446
61
Remaining customers
8,213
57
5,786
46
5,317
39
Total
14,409
100
12,535
100
13,763
100
The following table provides information about the exposure to credit risk for financial assets, excluding trade receivables measured at fair value through profit and loss:
Note
At 31 December
2023
2024
2025
Note
At 31 December
2023
2024
2025
Cash and cash equivalents
20
2,139
1,822
2,106
Loans and other long‑term receivables
46
34
36
Trade and other receivables other than those measured at fair value through profit and loss
19
264
206
140
Bank deposits over 3 months included in other financial assets
11
40
1
Liquidity risk
Liquidity risk is the risk that the Group will not be able to settle all liabilities as they fall due.
The Group’s centralised treasury regularly monitors forecast and actual cash flows and analyses the repayment schedules to take timely and appropriate measures in order to minimise potential adverse effects, including through liquidity management and proactive loan portfolio management aimed at minimising the amount of short‑term debt and maintaining the weighted average term of the loan portfolio at an acceptable level.
Current liquidity management involves detailed budgeting procedures, as well as analysis and structuring of a daily payment position for a 30‑day period. The payment position is calculated separately for each currency and bank account. In addition to the continuous analysis of the payment position, at least three times a month the Group updates its rolling cash flow forecast model with a horizon of up to 12 months.
The Group manages liquidity risk by maintenance of liquid funds and a portfolio of committed credit facilities and overdrafts with a number of banks at a level, which is sufficient to cover possible revenue fluctuations taking into account market risks.
In particular, the Group had available committed debt facilities and overdrafts to finance its day‑to‑day liquidity requirements of USD 9,713 million at 31 December 2025 (31 December 2024: USD 7,153 million and 31 December 2023: USD 3,819 million).
The Group continues its activities on expansion of credit limits capacity of its portfolio of confirmed and treasury credit lines. In order to optimise the average duration of liabilities and minimise risk of excess concentration of debt payments the Group considers all available options for arranging financing on the Russian market and holds negotiations with international financial institutions pursuing proactive debt portfolio management.
In accordance with the permissions received on a regular basis from government agencies on foreign currency payments of debt and interest to foreign creditors, the Group continues to service its debt in compliance with the terms of respective loan or bond facilities, including timing and currency of payments.
The maturity profile of the Group’s trade payables, liabilities for the purchase of property, plant and equipment and other creditors, with their remaining contractual maturities before repayment was as follows:
At 31 December
2023
2024
2025
Trade and other accounts payable except for advances received
Due within 1 month
694
609
691
Due from 1 to 3 months
225
301
412
Due from 3 to 12 months
270
200
345
Total
1,189
1,110
1,448
The following table shows the maturity profile of the Group’s borrowings, lease liabilities and derivative instruments based on contractual undiscounted payments, including interest, in accordance with management’s plans and contractual terms regarding the maturity profile. The analysis of future interest payments on floating rate loans and borrowings at 31 December 2025, 2024 and 2023 was performed using the interest rates applicable to the relevant instruments as of the reporting date.
At 31 December 2025
Total
Due in the first year
Due in the second year
Due in the third year
Due in the fourth year
Due in the fifth year
Due there‑ after
At 31 December 2025
Total
Due in the first year
Due in the second year
Due in the third year
Due in the fourth year
Due in the fifth year
Due there‑ after
Fixed rate bank loans and borrowings
Principal
7,035
2,928
3,257
–
850
–
–
Interest
639
398
146
59
36
–
–
7,674
3,326
3,403
59
886
–
–
Floating rate bank loans and borrowings
Principal
3,679
187
163
2,051
1,278
–
–
Interest
1,683
584
572
490
37
–
–
5,362
771
735
2,541
1,315
–
–
Lease liabilities
Lease liabilities
881
149
119
112
103
101
297
Total
13,917
4,246
4,257
2,712
2,304
101
297
At 31 December 2024
Total
Due in the first year
Due in the second year
Due in the third year
Due in the fourth year
Due in the fifth year
Due there‑ after
At 31 December 2024
Total
Due in the first year
Due in the second year
Due in the third year
Due in the fourth year
Due in the fifth year
Due there‑ after
Fixed rate bank loans and borrowings
Principal
1,774
1,274
500
–
–
–
–
Interest
86
72
14
–
–
–
–
1,860
1,346
514
–
–
–
–
Floating rate bank loans and borrowings
Principal
8,187
1,561
1,072
2,094
2,477
983
–
Interest
4,318
1,463
1,356
950
513
36
–
12,505
3,024
2,428
3,044
2,990
1,019
–
Lease liabilities
Lease liabilities
782
125
108
89
84
77
299
Total
15,147
4,495
3,050
3,133
3,074
1,096
299
At 31 December 2023
Total
Due in the first year
Due in the second year
Due in the third year
Due in the fourth year
Due in the fifth year
Due there‑ after
At 31 December 2023
Total
Due in the first year
Due in the second year
Due in the third year
Due in the fourth year
Due in the fifth year
Due there‑ after
Fixed rate bank loans and borrowings
Principal
2,872
1,032
1,340
500
–
–
–
Interest
211
121
76
14
–
–
–
3,083
1,153
1,416
514
–
–
–
Floating rate bank loans and borrowings
Principal
6,859
3,310
1,100
597
788
1,064
–
Interest
1,476
548
353
308
204
63
–
8,335
3,858
1,453
905
992
1,127
–
Lease liabilities
Lease liabilities
868
98
107
101
92
87
383
Cross‑currency interest rate swap
Payable
364
364
–
–
–
–
–
Receivable
(271)
(271)
–
–
–
–
–
93
93
–
–
–
–
–
Total
12,379
5,202
2,976
1,520
1,084
1,214
383
Reconciliation of changes in liabilities and cash flows from financing activities:
Loans and borrowings
Lease liabilities
Other
Total
Loans and borrowings
Lease liabilities
Other
Total
Balance at 1 January 2023
11,484
233
67
11,784
Proceeds from loans and borrowings
5,569
–
–
5,569
Repayments of loans and borrowings
(6,642)
–
–
(6,642)
Payments of lease liabilities
–
(45)
–
(45)
Proceeds on exchange of flows under cross‑currency interest rate swaps
–
–
8
8
Changes from financing cash flows
(1,073)
(45)
8
(1,110)
Other non‑cash changes:
Recognition of lease liabilities
–
417
–
417
Changes in fair value of the cross‑currency interest rate swap
–
–
60
60
Effect of changes in foreign exchange rates
(705)
(85)
(19)
(809)
Borrowing costs and amortisation of loans at effective interest rate
6
–
–
6
Balance at 31 December 2023
9,712
520
116
10,348
Proceeds from loans and borrowings
7,273
–
–
7,273
Repayments of loans and borrowings
(6,229)
–
–
(6,229)
Payments of lease liabilities
–
(55)
–
(55)
Payments on exchange of flows under cross‑currency interest rate swaps
–
–
(99)
(99)
Changes from financing cash flows
1,044
(55)
(99)
890
Other non‑cash changes:
Recognition of lease liabilities
–
59
–
59
Changes in fair value of the cross‑currency interest rate swap
–
–
(16)
(16)
Effect of changes in foreign exchange rates
(812)
(62)
(1)
(875)
Borrowing costs and amortisation of loans at effective interest rate
2
–
–
2
Balance at 31 December 2024
9,946
462
–
10,408
Proceeds from loans and borrowings
12,598
–
–
12,598
Repayments of loans and borrowings
(13,820)
–
–
(13,820)
Payments of lease liabilities
–
(75)
–
(75)
Changes from financing cash flows
(1,222)
(75)
–
(1,297)
Other non‑cash changes:
Recognition of lease liabilities
–
27
–
27
Effect of changes in foreign exchange rates
1,966
134
–
2,100
Borrowing costs and amortisation of loans at effective interest rate
6
–
–
6
Balance at 31 December 2025
10,696
548
–
11,244
Interest payable on loans and borrowings and lease liabilities (Notes 24 and 25) arising from financing activities is short‑term and is paid within 12 months from the date of accrual.
35. Fair value of financial instruments
Financial instruments that are measured at fair value subsequent to initial recognition, are grouped into Levels 1 to 3 of fair value hierarchy based on the degree to which their fair value is observable as follows:
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly; and
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the assets or liabilities that are not based on observable market data.
The management believes that the carrying value of financial instruments such as cash and cash equivalents (Note 20), other financial assets, trade and other receivables except for trade and other receivables at fair value through profit or loss and current accounts payable (Note 28) either approximates to their fair value or may not significantly differ from it. The fair value of trade and other receivables at fair value through profit or loss, as well as the level of the fair value hierarchy and the method of measuring are disclosed in Note 19.
The information below presents financial instruments not measured at fair value, including loans and borrowings (Note 24), trade and other long‑term payables (Note 28).
At 31 December 2023
At 31 December 2024
At 31 December 2025
Carrying value
Fair value
Carrying value
Fair value
Carrying value
Fair value
At 31 December 2023
At 31 December 2024
At 31 December 2025
Carrying value
Fair value
Carrying value
Fair value
Carrying value
Fair value
Fixed and floating rate bonds (Level 1)
3,668
3,155
4,452
4,115
9,935
9,921
Floating rate loans and borrowings (Level 2)
5,480
5,183
4,966
4,803
333
305
Fixed rate bonds (Level 2)
561
557
528
496
–
–
Fixed rate loans (Level 2)
3
3
–
–
428
406
Trade and other long‑term payables (Level 2)
51
50
41
40
62
62
Total
9,763
8,948
9,987
9,454
10,758
10,694
The fair value of financial liabilities presented in the table above is determined as follows:
the fair value of corporate bonds (Level 1 of fair value hierarchy) was determined as their market price at the reporting dates;
the fair value of floating and fixed rate loans and borrowings and fixed rate corporate bonds (Level 2 of fair value hierarchy) at 31 December 2025, 2024 and 2023 was determined as the present value of future cash flows (principal and interest), discounted at the market interest rates, which are determined as of the reporting date based on the currency of a loan or a bond, its expected maturity and credit risks attributable to the Group;
the fair value of trade and other long‑term payables at 31 December 2025, 2024 and 2023 was determined as the present value of future cash flows, discounted at the best management estimate of market interest rates.