EU prepares sanctions against Russian aluminium, 15 banks and shadow fleet, Bloomberg reports
The European Union is proposing a gradual ban on imports of Russian aluminium as part of a large-scale package of sanctions ahead of the third anniversary of the Kremlin's full-scale invasion of Ukraine.
Source: Bloomberg with reference to its sources
Details: The package also includes sanctions that will exclude about 15 banks from the SWIFT system and measures against more than 70 shadow fleet vessels involved in the transport of Russian oil.
The plan stipulates that European buyers will be able to import Russian aluminium under quotas for one year before the ban takes full effect. The plans require the agreement of all member states to implement and are subject to change before being formally submitted.
There have been calls for a ban on Russian aluminium since the start of the invasion of Ukraine, and shipments to the EU have been steadily declining as producers look for alternative suppliers.
However, some buyers and member states have so far resisted such measures, arguing that it would be difficult to replace some key products.
Pressure for tougher measures against Russia's steel sector has increased in recent months. Last year, the US and the UK banned Russian metals from trading on the London Metal Exchange, which initially caused sharp price fluctuations and led to a restructuring of global trade flows.
According to UN Comtrade, the EU imported about 320,000 tonnes of unprocessed aluminium from Russia in the first 11 months of 2024, accounting for 6% of total imports. Meanwhile, supplies to China have increased significantly.
Background:
Rusal, a company belonging to Russian oligarch Oleg Deripaska, plans to cut metal production by 250,000 tonnes due to the difficult economic situation.
Russian aluminium giant Rusal fears that up to 36% of its sales could be at risk due to sanctions imposed by the US and UK.
Russian aluminium giant Rusal said that the US and UK sanctions will not affect its metal exports, as they do not affect the company's global logistics solutions, access to the banking system and production system.
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