The European Union’s 13th package of sanctions against Russia is set to significantly impact Russian aluminium products, as reported by Politico citing European diplomatic sources. This move aligns with the EU’s broader strategy to intensify sanctions on Russia’s energy sector, notably because of the high electricity costs involved in aluminium smelting.
The focus on Russian aluminium, encompassing products like wire, foil, and pipes, stems from the EU’s intention to challenge Russia’s energy dominance. Aluminium production, being energy-intensive, makes up a substantial part of Russia’s energy sector, with electricity costs accounting for around 40% of production expenses. This approach was initiated in the 12th EU sanctions package approved in December, which included restrictions on the supply of these aluminium products from Russia.
Furthermore, European Aluminium, an influential industry group, has advocated for a more stringent stance. They propose a complete embargo on primary aluminium produced in Russia, a significant step given that more than 85% of the EU’s aluminium imports from Russia are in the form of primary metal. Despite the imposition of previous sanctions, European Aluminium points out that Russian aluminium imports have been reduced by only 15%.
Discussions among EU countries are underway to determine the specifics of the new sanctions. These talks are expected to evolve into a proposal for a full ban on the import of Russian aluminium into the EU. However, there’s a nuanced debate around UC Rusal, one of Russia’s largest aluminium producers. As reported by Reuters, European Aluminium has suggested exempting UC Rusal from these sanctions, citing the company’s deep integration into European business. Sanctions against UC Rusal are deemed problematic due to the potential for broader economic repercussions.
Background to these developments includes Bloomberg’s report that the EU began deliberations on its 13th sanction package against Russia with an aim to finalize by February 24. These discussions, starting January 17, have revolved around expanding existing sanction lists, adding new trade restrictions, and formulating measures to prevent the circumvention of sanctions. 
