Aluminum Sector Advances and Challenges in Russia

During Aluminum Days, the business world highlighted the achievements of Russia’s aluminum sector. A dedicated pavilion showcasing aluminum-based, high-tech products stood at the center of the event, where Irina Kazovskaya, president of the Aluminum Association, led a tour for officials and company executives. At the general assembly, industry leaders and policymakers discussed growth plans and current challenges facing the sector.

In a welcome address to participants, Denis Manturov, Deputy Prime Minister and Minister of Industry and Trade, underscored the significance of the aluminum industry for the national economy.

He emphasized that Russia’s aluminum sector is recognized not only as a high-tech and rapidly expanding field but also as a leader in advancing other foundational industries. Domestic demand for aluminum is rising each year, a clear indicator of Russia’s economic and industrial potential, he said.

Manturov noted that aluminum producers, with a broad geographic footprint, employ more than 600,000 people and actively foster Russia’s technological independence. He voiced confidence that the industry would continue to grow after recent successes.

Today, the aluminum sector stands as a key driver of innovative development across Russia’s major industries. Collaboration among aluminium-related firms enables diverse projects in construction, energy, transportation infrastructure, and beyond.

Viktor Evtukhov, State Minister and Deputy Minister of Industry and Trade, pointed out that the sector’s share of GDP is about 1.5 percent. Russia ranks second globally in primary aluminum production at roughly 4.1 million tons per year, trailing only China. Per capita aluminum consumption in Russia rose from 7 to 10 kilograms over eight years, signaling progress in high-tech, environmentally friendly products with strong added value as demand expands.

“A key indicator of economic development is aluminum consumption per capita, where Russia still lags behind many nations,” Evtukhov noted. He added that this gap does not reflect a lack of belief in aluminum’s value, but rather past perceptions that aluminum was pricier than traditional materials. Today, scaled production is driving lower costs for manufacturers.

Wide range of applications

Sergei Muzychenko, Deputy Minister of Construction, Housing and Utilities, explained that aluminum now plays a vital role in construction, accounting for about a quarter of domestic aluminum use. The metal is a core material for buildings, bridges, facades, and stained glass structures.

Muzychenko argued that achieving national construction goals relies on modern technologies and materials. Aluminum offers a blend of functionality and environmental friendliness, presenting builders, architects, and designers with new creative possibilities. He added that the construction sector remains a primary consumer of aluminum, with usage increasing each year.

Demand continues to rise due to aluminum’s lightness, durability, recyclability, and environmental profile. The broad adoption of aluminum across industries reflects a global trend toward aluminization, with energy and packaging following construction in metal usage.

Valery Seleznev, First Deputy Chairman of the State Duma Energy Committee, highlighted aluminum’s distinctive properties: lightness, corrosion resistance, durability, and high electrical conductivity, which are crucial for the energy sector. This makes aluminum indispensable for electrical engineering and power infrastructure. He noted its use in overhead power line conductors and aluminum alloys in power supports.

Seleznev also stressed aluminum’s extensive role in wiring, cables, contacts, and power busbars across numerous enterprises. He added that the metal remains essential in gas production and processing, as well as oil production, due to its resilience against environmental challenges.

Aluminum and technology

Finished aluminum products reflect Russia’s advanced capabilities, with a broad domestic supply chain spanning hundreds of companies from semi-finished products to final goods. The sector relies on a deep pool of science-driven expertise to meet the needs of major industries.

Experts stated that a target of 169 thousand tons of additional consumption could be met this year through the development and deployment of new products and solutions. This involves science-intensive projects and collaboration among research institutes like ILMiT and other partners, including discussions about new alloys and advanced materials.

In May 2023, Russia’s government approved an action plan to boost demand for aluminum products through 2025, with a view toward 2030. The plan, conceived by the Aluminum Union, emphasizes regional programs that deploy high-tech aluminum structures and alloys in housing, industry, social facilities, aviation, and transport infrastructure.

Evtukhov noted that the aluminum strategy aims to expand regional adoption of aluminum use, bringing more contractors from various sectors into the fold and pursuing a resilient future despite sanctions. The overall outlook remains positive, reflecting ongoing diversification and investment in the sector.

Industry challenges

During the general assembly, Aluminum Association President Irina Kazovskaya addressed sanctions and other industry hurdles. She described the current environment as under unusual pressure and noted that the raw material base has been partially eroded due to limited imports, complicating operations.

Kazovskaya highlighted Rusal’s commitment to building its own raw material base, including a major investment in the Leningrad Alumina Refinery. She also noted significant social and environmental investments, including substantial funding for updating aluminum smelters and related facilities.

Evtukhov confirmed that raw material independence is essential for the sector’s development and reiterated the importance of projects like the Leningrad initiative for broader supply resilience.

Another challenge involves the import of aluminum products at discounted prices. The industry has long advocated protective measures to shield the domestic market. Evtukhov stated that, should evidence of dumping arise, it would be appropriate to consider protective actions in coordination with the Eurasian Economic Commission. Officials indicated that regional programs should be developed to expand demand for innovative aluminum products across all sectors, from automotive to energy and beyond.