Business groups say bans on Russian aluminum will decimate European industry

Oct 24 (Reuters) – Five European industry associations said on Monday they had urged European authorities to prevent sanctions, tariffs or boycotts against Russian aluminum that they said could put thousands of companies out of business.

Russia’s Rusal (RUAL.MM), produces around 6% of the world’s aluminum. This metal has not been targeted by Western sanctions against Russia following its invasion of Ukraine.

But the US is considering restrictions on Russian aluminum imports and the London Metal Exchange (LME), the biggest metals trade hub, is asking members if it should ban Russian material from its system. read more

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Some companies have said they will stop buying Russian aluminum and others, such as US producer Alcoa (AA.N), are lobbying for measures against Russian metal. read more

In a joint statement, the associations said they sent a letter to EU authorities and “requested the urgent intervention of the European Commission and of EU member states against threats of bans, high tariffs or sanctions on Russian aluminum which represent an imminent and vital threat to the European aluminum industry.”

The statement said those boycotting or calling for measures against Russian metal “are either its main competitors or they enjoy supply options that are not available to the vast majority of the European aluminum value-chain.”

For smaller users of aluminum in Europe, measures against Russian metal risked “potentially thousands of company closures and tens of thousands more unemployment in Europe as a direct consequence,” it said.

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