Western ban on Russian palladium unlikely but possible

Significance G7 states failed in October to agree on a US proposal to sanction Russian palladium, which dominates the global market. If the EU proposal is adopted, it would disrupt Western automakers' supply chains and could potentially cut vehicle production. Impacts A surge in the palladium price and trouble sourcing supply would undermine the profitability of already struggling Europe-based automakers. Higher palladium prices could raise the cost of internal combustion engine cars and provide renewed impetus to EV sales. If Russian palladium is not banned, Russia could seize the initiative and deny exports to the West, hitting Western automakers’ activity.