Moscow: Russian aluminum giant Rusal has been hit by economic sanctions

Russian aluminum giant Rusal said on Friday it was hit by international sanctions, particularly sluggish Russian demand, as it reported a sharp decline in first-half net profit. Net profit fell 16.7% to $1.68 billion in the first half of the year, according to figures released Friday in a report. Founded by oligarch Oleg Deripaska, the group points out that “growing geopolitical tensions since February 2022 have significantly increased volatility in commodity and currency markets.”

Because of these tensions The Russian offensive in Ukraine has been ongoing since February 24 Subsequent international sanctions against Moscow “have negatively affected the activities of Russian companies in various sectors of the economy by reducing demand for aluminum in Russia,” the statement said.

Also, Australia’s ban on aluminum exports, the aluminum was then extracted, and the shutdown of production at the alumina refinery in Mykolaiv, Ukraine, “had a negative impact on the supply of aluminum and raw materials for production. Costs increased”, he notes. The Russian group is “obliged to redo its supply chain”. For their part, “Investment plans and modernization projects for production facilities may be postponed due to difficulties in supplying equipment,” he adds.

A very large number of Russian economic players face serious problems in the supply of equipment and spare parts, sales to Russia are prohibited. They are also struggling to import or export as international logistics and financial chains are partially paralyzed by retaliatory measures imposed by Europe and the US.

Turnover at the Hong Kong-listed Russian aluminum giant – however, rose 31.3% to $7.2 billion in the first half.