Russian media announced Nov. 5 that a government representative will join the board of directors of Russian mining giant Norilsk Nickel, the world's largest nickel producer. The Kremlin has long had its eye on Norilsk Nickel, hoping to mold it into one of its state-run economic champions like Gazprom and Rosneft. (One of Russian Prime Minister Vladimir Putin's men was made Norilsk CEO in July.) Norilsk Nickel, the world's leading producer of nickel (close to 20 percent of global supplies) and palladium (nearly half), is headquartered in the city of Norilsk deep in the Siberian North. Built on year-round permafrost, Norilsk is the northernmost city in Siberia. From there, it is possible for the company to ship its ore only on a seasonal basis. Accessible by neither road nor rail, mining operations at Norilsk itself (the company also has holdings elsewhere) can export nickel and palladium only by boat in the warm months when the nearby rivers and the Kara Sea are navigable. In the winter, the area can be reached only by plane. This geographic isolation underlies the significance of the Kremlin's move. Norilsk Nickel's chairman and largest shareholder, Vladimir Potanin, has long worked to keep the company financially independent and politically agnostic, striving to retain its freedom of action. But back in April, even before the CEO appointment, Russian aluminum giant RUSAL (owned by Oleg Deripaska, one of Putin's closest oligarchs) borrowed from state-owned Vnesheconombank (VEB) to finance its acquisition of a 25 percent stake in Norilsk Nickel. The ensuing decline in demand for nickel has opened a door for the Kremlin. As part of a deal to refinance the April loan to RUSAL, an extraordinary Dec. 26 shareholders' meeting is expected to elect a representative of the Kremlin's choosing to an enlarged board of directors that will likely undermine Potanin's influence to ensure the interests of VEB. In addition, RUSAL's management team at Norilsk Nickel — already known for doing the Kremlin's bidding — will be joined by two more government representatives. The Kremlin has never made a secret of the fact that it wants Norilsk Nickel for itself. If the immense isolation of Norilsk is no longer enough to keep the Kremlin's men out, nothing is. And with the company's CEO already in the Kremlin's pocket and a second board member soon to be as well, Norilsk Nickel is creeping toward becoming a state-run entity, in practice if not formally so.