Europe considers sanctions against Russian aluminium

The European Aluminium industry group is considering lobbying the European Union to impose sanctions on Russian aluminium, but against direct sanctions against Rusal, the country's largest producer.

Source: Reuters, citing a document sent to group members

Details: The head of European Aluminium said that the trade group has prepared an internal memorandum for planning purposes and has no information on any EU sanctions already agreed. The European Commission refused to comment.

A document dated July 2023, obtained by Reuters, states that European Aluminium members discussed the possibility of "actively calling for EU sanctions on Russian aluminium".

However, the scale of Rusal's operations makes sanctions against it problematic.

"European Aluminium (therefore) recommends avoiding that EU sanctions would target Rusal as a company," the association said.

The media outlet clarifies that Rusal produced 4 million metric tonnes of primary aluminium last year, which is about 6% of global production.

In addition, the document states that Rusal owns the Irish Aughinish, the EU's largest raw alumina refinery, and the Kubal plant in Sweden.

The benchmark aluminium price on the London Metal Exchange rose 0.2% to US$2,282.50 a metric tonne in afternoon trading, down 4% so far this year.

The Aluminum Association, a US trade group, said it has been watching Russia's aggression in Ukraine with "growing alarm" and has been in touch with the European Aluminium Union.

The industry supports any efforts by the US government and allies to address the current crisis, "including new tariffs on aluminum imports from Russia announced earlier this year," the association said.

Russia accounts for less than 3% of US aluminium imports.

Until now, the EU has restricted imports of only a limited number of specific aluminium products from Russia – aluminium plates, sheets or strips over 0.2 mm thick.

The last package of sanctions was adopted in June, and active discussions on a new package are not expected in the near future.

In February, the United States announced plans to impose a 200% tariff on aluminium and its derivatives produced in Russia, and in May, the UK announced plans to ban imports of Russian aluminium along with diamonds, copper and nickel.

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