Russian aluminum products may be included in the list of the 13th package of anti-Russian sanctions of the European Union, Politico newspaper writes, citing European diplomats.
According to the publication’s sources, the new restrictions, which are planned to be introduced by February 24, were discussed at a meeting attended by EU ambassadors on January 17.
It was noted that the meeting participants raised the issue of expanding sanctions lists, additional trade restrictions and measures to combat circumvention of restrictions.
Let us remind you that wires, foils, pipes and tubes made of Russian aluminum have already been banned in the EU in December 2023. And the company Rusal, which is actually a refining company, has lost more than a third of the necessary alumina, the raw material for aluminum production, since 2022 due to sanctions and actions of unfriendly countries.
As noted in the Rusal report, although Europe’s share of the company’s revenue decreased in the first half of the year, it is now around 31%, or almost $1.9 billion in nominal terms.
Previously, the share of the largest destination in Asia was 33%, or almost $2 billion.
The Aluminum Association notes that the reorientation of sales markets is painful – Asian and Eastern countries impose customs duties on any Russian products and also demand discounts and complex, often more expensive logistics compared to Europe.
in industrial association situationIt is stated that alternative supplies from Asian countries are again associated with higher costs, as alumina prices are on average 25% higher than in previous markets. At the same time, aluminum exchange prices on the London Metal Exchange have fallen by more than 40% per tonne compared to the end of February 2022.
Aluminum Association also stated About risks related to the activities of industrial enterprises. INSIDE review Some Rusal enterprises operate on the verge of zero profitability or even negative profitability, the association said.
Moreover reportedIt is stated that Rusal’s rivals, including Norsk Hydro and Alcoa, are pressuring the London Metal Exchange (LME) to block Russian aluminum trade.