The administration of US President Joe Biden is considering a complete ban on Russian aluminum. Before this, this widespread metal was not subject to sanctions.
Bloomberg writes about it.
According to the publicationʼs sources, the White House is considering three options: a direct ban, an increase in tariffs, or sanctions against the Russian state-owned company that produces aluminum, RUSAL.
After news of a possible ban, the global price of aluminum rose. It rose 7.3% on the London Metal Exchange, its biggest daily gain in nearly two weeks.
Russia is the worldʼs second-largest producer of aluminum after China. This metal is crucial for most heavy industries. Only in the USA Russia sells about 10% of the total volume of aluminum imports. According to Bloomberg, in August 2022, Russia was the third largest exporter of this metal to the United States.
At the beginning of Russiaʼs full-scale war against Ukraine, the US held back sanctions against Russian aluminum, fearing that it could harm global suppliers.
But now, there are fewer and fewer goods that allies of the United States and Ukraine can ban in response to escalation by Russia. The discussion in the White House has been going on for several weeks.
The London Metal Exchange last week launched discussions on banning transactions with Russian metal.
Alcoa, the largest aluminum producer in the United States, sent a letter to the London Metal Exchange last month. It stated that the stock exchange should ban trade with Russia.
The chief executive of Rio Tinto Plc, the worldʼs second-largest mining company, also feared that the unimpeded flow of Russian aluminum to the United States was making local producers less competitive.
- Earlier, Bloomberg wrote that the European Union is considering a new package of sanctions against Russia. It will make it possible to punish people who help evade EU restrictive measures.
- The European Union has already approved the eighth package of sanctions against Russia. It includes a ban on the import of Russian products worth €7 billion and a cap on oil prices.