Supply of autocatalyst metal palladium from Russia is expected to fall 2 percent this year, GFMS analysts said on Friday, but the impact of potential sanctions over the Ukraine conflict is likely to be minimal.

Speculation that the stand-off between Moscow and the West over Ukraine could hurt output from Russia has helped prices of the metal hit 13-1/2 year highs this month at $905 an ounce. Russia is the number one source of palladium, accounting for more than 40 percent of supply last year.