As Russia’s invasion of Ukraine shows no signs of stopping, US-based lightweight metal engineering and manufacturing company Arconic has sold off its Russian assets.
To comply with sanctions against Russia, Arconic sold its Russian operations to the majority owner of the state-backed metals company VSMPO-AVISMA for cash. The key property changing hands is the Samara Metallurgical Plant.
Why it matters
Even though Arconic paused new contracts in Russia back in March, it remained one of very few foreign companies that still had property in the mining sector.
“The sum of the deal is relatively modest, just USD 230 million, even though the Americans invested around USD 0.5 billion in the Samara Metallurgical Plant over the years. They had no choice but to agree to this relatively small sum due to the foreign policy situation around Russia” – Expert comment by Leonid Khazanov / Consultant – Metals and technologies.