Russians will help Oleg Deripaska from their own pockets

The Ministry of Industry and Trade of the Russian Federation plans to zero out export duties and purchase aluminum at state expense.

Russian authorities will soon consider support measures for the aluminum company Rusal, including the abolition of export duties and the purchase of the company’s products for reserve. This was announced by Deputy Head of the Ministry of Industry and Trade Viktor Evtukhov. He noted that in order to make a final decision, it is necessary to analyze the global balance in the aluminum market.

“These proposals (on support measures for Rusal - Kommersant) will be discussed in the near future, and decisions will be made,” said Mr. Evtukhov on the sidelines of the international exhibition “Innoprom. Central Asia" (quote from TASS). Another major producer of non-ferrous metals affected by new sanctions from Great Britain and the United States, Norilsk Nickel, has so far, according to the deputy minister, not asked for help from the government.

Speaking about sanctions, the deputy head of the Ministry of Industry and Trade recalled that Russia ranks second in the ranking of global aluminum producers after China. “We use high quality aluminum. And I don’t think that America’s and England’s refusal to buy our aluminum, where we didn’t supply much anyway—crumbs, one might say—will in any way affect the possibility of our supplies to other countries,” he added.

Mr. Evtukhov drew attention to the fact that the restrictions imposed by Western countries apply only to primary aluminum. They do not affect products made from Russian aluminum. “Experts estimate the potential and capacity of our market to be up to 2 million tons, despite the fact that Rusal , as you know, produces approximately 4.1-4.2 million tons. Of course, this is not done overnight, but such work is being carried out, and its results are already evident,” said Viktor Evtukhov .

The government introduced export duties linked to the ruble exchange rate in the fall of 2023; they range from 4 to 7% depending on the exchange rate. In December of the same year, Rusal asked to cancel the exchange rate export duty for its newest plants - Taishetsky and Boguchansky, which account for approximately 10% of output. The deputy head of the Ministry of Industry and Trade then noted that the department was “studying the feasibility of such a support measure.”

The Russian Aluminum Association stated in December 2023 that although sanctions have not been imposed on Russian aluminum, many of the traditional sales markets for the Russian Federation have been lost, and work on others is complicated. In particular, the USA, Great Britain and Australia introduced protective duties on aluminum from the Russian Federation (270%, 35% and 35%, respectively), and in the EU key processors themselves refused to purchase Russian metal.

The revenue of Oleg Deripaska’s Rusal , received in Europe and the American region, at the end of last year decreased by 40%, to $3.5 billion. Moreover, $3.4 billion came from Europe, which accounted for a quarter of all company sales in 2023. According to customs statistics, the United States no longer buys Russian metals.

The government introduced export duties linked to the ruble exchange rate in the fall of 2023; they range from 4 to 7% depending on the exchange rate. In December of the same year, Rusal asked to cancel the exchange rate export duty for its newest plants - Taishetsky and Boguchansky, which account for approximately 10% of output. The deputy head of the Ministry of Industry and Trade then noted that the department was “studying the feasibility of such a support measure.”

The Russian Aluminum Association stated in December 2023 that although sanctions have not been imposed on Russian aluminum, many of the traditional sales markets for the Russian Federation have been lost, and work on others is complicated. In particular, the USA, Great Britain and Australia introduced protective duties on aluminum from the Russian Federation (270%, 35% and 35%, respectively), and in the EU key processors themselves refused to purchase Russian metal.

Rusal’s revenue received in Europe and the American region at the end of last year decreased by 40%, to $3.5 billion. Moreover, $3.4 billion came from Europe, which accounted for a quarter of all company sales in 2023. According to customs statistics, the United States no longer buys Russian metals.

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