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Foreign companies don’t want to cooperate with Rusal because of the US secondary sanctions

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Foreign companies don’t want to cooperate with Rusal because of the US secondary sanctions
September 26
09:00 2018

In the middle of this month, representatives of Rusal held several meetings with foreign top managers. It was about the technology supply. Nevertheless, it wasn’t possible to conclude an agreement. Foreign partners are cautious around the US sanctions against the Russian aluminum giant.

The negotiations were held during the exhibition in Krasnoyarsk, which was attended by about 700 representatives of various organizations from 20 countries. They were interested in the achievements of the Russian manufacturer. China, Norway and Canada, for example, paid special attention to the production of aluminum, cast alloys and scandium oxide. However, no agreements were concluded. Partners are interested in getting acquainted with the groundwork, but sanctions hinder serious cooperation.

It is obvious that cooperation with Rusal can be very profitable, but the fears of introducing secondary sanctions cancel out possible business relations with foreign partners.

Rusal hasn’t commented on the failed negotiations yet.

The Russian company has been sanctioned for 6 months. If the sanctions are not removed, since October the export goods will be stored at the warehouses, in which there is already aluminum that wasn’t sold in April.

Previously, most of Rusal’s products were exported. The government talks about the sale of aluminum in the domestic market, but increasing its capacity is a long process. Public procurement will be the only solution in such conditions. But it is a temporary measure, which allows doing without a serious decline in production.

In the first half of the year, the company’s sales have decreased by 12% to 1.7 million tones. The number of sold value-added products has decreased to 869 thousand tons. Last year, this figure was almost 100 thousand tons more.

 

The material was prepared with the participation of Anjela Chromova,
a leading analyst of the brokerage company CT Trade

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