19.03.2024
RUSAL STATEMENT ON THE REUTERS STORY
RUSAL, one of the world’s largest aluminium producers, has seen the latest statement of the European Aluminium to Reuters and has the following comments:
Summary:
‘This campaign is simply about taking advantage of the geopolitical situation to compete unfairly to the benefit of primary aluminium companies competing with RUSAL with no regard for European consumers, economic stability or the desperate need for decarbonisation.’
1. The European Aluminium, whose members are direct competitors of RUSAL, continues to openly lobby for sanctions against RUSAL as a business competitor of several of its large members in the European market - large upstream companies, absolutely ignoring the interests of small and medium-sized downstream companies and the potential impact on the European economy, let alone the environment.
2. The main victims of sanctions against Russian aluminium would be European small and medium-sized downstream companies, which are an important part of the European economy and are responsible for some 70% of turnover and 92% of employment of the European aluminium industry. They are the ones, who will face shortages, higher prices and be forced to buy higher carbon aluminium from companies using coal fired smelters.
3. Production primary aluminium in Europe is decreasing – Europe imports almost 90% of its aluminium. To impose sanctions against Russian aluminium, the EU immediately cuts supply of 500 thousand tons of the metal per year. More than 95% of Russian aluminium is produced using domestic hydroelectricity. Any ban of the Russian aluminium given it is the largest external source of low carbon aluminium in the world works actively against decarbonisation and the green energy transition.
4. On top of the current crisis in the Red Sea, sanctions would further massively disrupt supply chains and this will inevitably lead to further shortages and increase in aluminium prices. RUSAL now is a unique global supplier with a wide logistic optionality to serve customers all over the world without disruptions in logistics.
5. It is unclear as to why a ban on the import of alumina and bauxite would harm the European economy, but a ban on Russian aluminium would not.
Summary:
‘This campaign is simply about taking advantage of the geopolitical situation to compete unfairly to the benefit of primary aluminium companies competing with RUSAL with no regard for European consumers, economic stability or the desperate need for decarbonisation.’
1. The European Aluminium, whose members are direct competitors of RUSAL, continues to openly lobby for sanctions against RUSAL as a business competitor of several of its large members in the European market - large upstream companies, absolutely ignoring the interests of small and medium-sized downstream companies and the potential impact on the European economy, let alone the environment.
2. The main victims of sanctions against Russian aluminium would be European small and medium-sized downstream companies, which are an important part of the European economy and are responsible for some 70% of turnover and 92% of employment of the European aluminium industry. They are the ones, who will face shortages, higher prices and be forced to buy higher carbon aluminium from companies using coal fired smelters.
3. Production primary aluminium in Europe is decreasing – Europe imports almost 90% of its aluminium. To impose sanctions against Russian aluminium, the EU immediately cuts supply of 500 thousand tons of the metal per year. More than 95% of Russian aluminium is produced using domestic hydroelectricity. Any ban of the Russian aluminium given it is the largest external source of low carbon aluminium in the world works actively against decarbonisation and the green energy transition.
4. On top of the current crisis in the Red Sea, sanctions would further massively disrupt supply chains and this will inevitably lead to further shortages and increase in aluminium prices. RUSAL now is a unique global supplier with a wide logistic optionality to serve customers all over the world without disruptions in logistics.
5. It is unclear as to why a ban on the import of alumina and bauxite would harm the European economy, but a ban on Russian aluminium would not.
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