Rusal, recognized as one of the leading aluminium producers globally, has issued a statement regarding recent actions by European Aluminium, as reported to Reuters. The company criticizes European Aluminium's lobbying for sanctions against Rusal, seeing it as an attempt to exploit the geopolitical situation for competitive advantage, disregarding the broader implications for European consumers, economic stability, and environmental goals.
European Aluminium, representing some of Rusal's direct competitors, has been advocating for sanctions against the company, a move Rusal argues overlooks the interests of the smaller entities in the industry and the European economy at large. Rusal points out that small and medium-sized downstream companies, crucial to the European aluminium sector's turnover and employment, would bear the brunt of such sanctions. These companies would face shortages, elevated prices, and the necessity to source aluminium produced with higher carbon footprints from coal-fired smelters.
With European primary aluminium production on the decline and the continent importing nearly 90% of its aluminium, sanctions on Russian aluminium would slash supply by 500,000 tons annually. Rusal emphasizes that over 95% of Russian aluminium is produced using hydroelectric power, making it a critical source of low-carbon aluminium essential for decarbonization and the green energy transition.
The company also highlights that sanctions, especially amidst the current Red Sea crisis, would exacerbate supply chain disruptions, leading to shortages and further price hikes. Rusal, with its extensive logistics network, positions itself as a key global supplier capable of maintaining stable deliveries worldwide.
Rusal questions the logic behind the potential harm to the European economy from banning imports of alumina and bauxite but not from restricting Russian aluminium, advocating for a reconsideration of the proposed sanctions and their implications.
