Russia plays a key role as the second-largest producer of platinum worldwide, supplying a significant portion of the metal used in cars, jewelry, and industry despite facing production challenges and international sanctions.
South Africa leads global platinum mine production with about 120 metric tons in 2024, but Russia follows closely with around 18 metric tons that year.https://www.statista.com/statistics/273645/global-mine-production-of-platinum/ The country’s output comes mainly from Nornickel, also known as Norilsk Nickel, which produced 664,000 ounces of platinum in 2023, ranking it among the top mining companies globally.https://www.statista.com/statistics/273645/global-mine-production-of-platinum/ In 2023, Russia exported $6.84 billion worth of platinum, securing its spot as the world’s second-largest exporter.https://oec.world/en/profile/bilateral-product/platinum/reporter/rus
Russia’s platinum supply has faced headwinds in recent years. In the third quarter of 2025, Russian supply dropped 9 percent year-on-year to 156 thousand ounces, due to lower ore output from Nornickel.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf The company struggled after Western mining equipment suppliers pulled out, forcing a switch to alternative sources that slowed production. Transport issues added further delays to refined output.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Sanctions related to Russia’s economy have crippled exports, creating logistical barriers similar to those affecting palladium.https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929https://gerrardsbullion.com/invest/2025-in-review-the-themes-that-shaped-the-precious-metals-market/
These supply issues contribute to a tight global platinum market. The World Platinum Investment Council forecasts a 2025 deficit of 692 thousand ounces, or 9 percent of annual demand, with total supply falling 2 percent to 7,129 thousand ounces due to weaker mine output.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Nornickel itself predicts a platinum deficit of 300 thousand ounces in 2025 excluding investment demand, or 400 thousand including it, differing from some forecasts of balance.https://www.xlence.com/en/news-analysis/russias-largest-palladium-producer-sees-platinum-deficit-this-year-commerzbank/ In Q3 2025, global supply stayed flat while demand rose 28 percent, widening the gap.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
Demand for platinum remains strong in areas like autocatalysts and expanding industrial uses. Nornickel reports 3 percent growth in platinum demand for key applications in 2025, driven by AI data centers.https://nornickel.com/news-and-media/press-releases-and-news/nornickel-presents-metals-market-review-15-12-2025/ Global demand hit about 7.6 million ounces in 2024, outpacing total production of 170 metric tons.https://www.statista.com/statistics/273645/global-mine-production-of-platinum/ Events like U.S. petitions against Russian palladium imports in 2025 also lifted platinum prices to $1,563.https://www.fxstreet.com/analysis/what-drove-the-strong-performance-of-platinum-group-metals-in-2025-202512151929
Russia’s position underscores the market’s vulnerability to geopolitical tensions and supply disruptions from its mines.
Sources
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
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