A source familiar with the situation told Reuters on Thursday that Russian metals major Nornickel is planning a partnership proposal to build a platinum group metals (PGMs) refinery in Bahrain.

Nornickel is the world's largest palladium producer and a major platinum producer, accounting for 41% and 12% of total mine output, respectively. Both metals are mostly employed in automobile exhausts to neutralize toxic engine emissions, while platinum is also used in jewelry.

The source did not provide the project's timeline or refinery production capacity.

King Hamad bin Isa Al Khalifa of Bahrain spoke with Russian President Vladimir Putin in the Kremlin earlier on Thursday. Following the meetings, Russian Deputy Prime Minister Alexander Novak told state television that Nornickel intends to build "a platinum production factory" in Bahrain.

Novak provided no other information. Nornickel declined to comment.

Nornickel has not been directly targeted by Western sanctions imposed on Moscow since Russia attacked Ukraine in 2022, but several of Russia's precious metals refineries, which also handle PGMs, have.

In November, Britain placed sanctions on Russia's largest, state-owned refinery, Krastsvetmet, as part of its efforts to target Russia's gold industry.

Sanctions imposed on Moscow in the last two years have harmed Nornickel's logistics, normal trade flows, money transfers, and acquisitions of imported equipment. The corporation, which also produces nickel and copper, has been rearranging its production and sales strategy in an effort to mitigate the harm.