European Aluminium, an industry group, has urged the European Union to consider imposing sanctions specifically on aluminium sourced from Russia while exempting EU-based companies owned by Rusal, a major producer of bauxite and alumina with operations beyond Russia. The call for targeted sanctions aims to address concerns over Russian-origin aluminium imports amid the ongoing conflict in Ukraine, emphasizing the need to balance geopolitical considerations with safeguarding European industrial interests.
Rusal, a significant player in the global aluminium market, distributed 4.2 million metric tons of aluminium last year, predominantly sourced from Russia. Despite its extensive operations in various countries, including Ireland, Sweden, Jamaica, Guinea, and China, Rusal’s primary aluminium production remains concentrated in Russia. The company’s assets primarily focus on alumina and bauxite production, essential raw materials for manufacturing aluminium products used in construction, packaging, and the transportation sector.
European Aluminium has emphasized the importance of aligning EU sanctions with efforts to disrupt the Russian war machine while minimizing adverse impacts on European industries and society. The industry group acknowledges the complexities of balancing moral imperatives with pragmatic considerations in shaping sanctions policies to achieve desired outcomes effectively.
Current EU sanctions target specific aluminium products like wire, foil, tubes, and pipes manufactured in Russia, while excluding primary metal exports that constitute a significant portion of Russian aluminium imports to the EU. Despite a decline in EU imports of Russian primary aluminium since 2018 when the U.S. imposed sanctions on Rusal, the industry group highlights the need for further measures to reduce dependence on Russian aluminium sources.
As expectations of surpluses in the aluminium market persist due to low consumption levels and production increases, European Aluminium underscores the EU’s capacity to diversify aluminium sources from alternative producer countries or bolster local production capabilities. The evolving dynamics of the global aluminium industry underscore the strategic importance of ensuring supply chain resilience and reducing reliance on Russian aluminium imports for long-term sustainability.