US Finds Russia Subsidizes Palladium Exports: What You Need to Know

You might care about this because the U.S. Department of Commerce has made a preliminary decision that Russia provides unfair government support, or subsidies, to its companies that produce and export unwrought palladium. This means that palladium from Russia might be sold in the U.S. at an artificially low price, which could harm American palladium producers. The investigation looked at trade activities from January 1, 2024, through December 31, 2024. As a result of this preliminary finding, the U.S. Customs and Border Protection will start collecting cash deposits on these imports. These deposits are equal to the estimated subsidy rates. The Department of Commerce will keep investigating this matter. They invite anyone interested to share their thoughts on this initial decision. What makes this particularly interesting is how the U.S. Department of Commerce reached its decision. Two Russian companies, JSC Urals Innovative Technologies and Prioksky Plant of Non Ferrous Metals, did not provide the information requested during the investigation. Because of this lack of cooperation, the Department of Commerce used "adverse facts available" to calculate the subsidy rates. This means they used the best available information, even if it was not directly from the companies under investigation, and they made an assumption that the uncooperative companies benefited from higher subsidies. The resulting estimated subsidy rate for both companies, and for all other Russian palladium producers, is 109.10 percent. This high rate shows the severity of the preliminary findings. The investigation also faced delays due to a U.S. federal government shutdown and a backlog of electronic filings, which pushed back the original deadline for this preliminary decision. Several groups will find this legal document highly relevant. American companies that mine, process, or sell palladium will be very interested, as this decision could protect them from unfair competition. Importers and purchasers of unwrought palladium from Russia will also need to pay close attention because they will now be required to pay cash deposits on their imports. Legal professionals specializing in international trade law and anti-dumping or countervailing duty cases will find the methodology, especially the use of adverse facts available, to be a significant detail. Additionally, anyone involved in the global metals market or with investments in palladium could see this as an important development affecting supply and pricing. Manufacturers that use palladium in their products, such as in catalytic converters or electronics, should also be aware of these potential changes to their supply chain costs.