Russian aluminum giant UC RUSAL has submitted state support proposals for refining of primary aluminum to the Industry and Trade Ministry, Minister Denis Manturov reported on April 18.
On April 6 the U.S. imposed sanctions against 38 Russian tycoons, officials and companies including RUSAL. U.S. Investors were allowed to sell the shares and bonds of RUSAL until May 7.
“RUSAL has submitted its proposals to support a direction that is vital for further development of the aluminum industry to the ministry. In particular, the proposals included creation of the industry of refining primary aluminum in three regions – Krasnoyarsk, the republic of Khakasia, and Volgograd,” Manturov said.
“We will depend on imports as long as we don’t develop the refining industry and don’t create new ventures for deep refining of primary aluminum,” he said, adding that Russia exported up to 80% of primary aluminum.
Alexander Shokhin, president of the Russian Union of Industrialists and Entrepreneurs, said that the union met with Prime Minister Dmitry Medvedev. They considered sanctioned companies, including measures proposed by RUSAL and multi-industry holding Renova Group, but there was no in-depth discussion, he said.
The sanctioned companies will have to violate Russia’s legislation on operations with foreign currency, including transfers of money to banks and accounts other than defined by contract documents. But the central bank is ready to cancel punishments of the sanctioned companies in case of one-time violations, he said.
Shokhin also suggested that the Russian government create a specialized department to react to Western sanctions, and Medvedev agreed to consider the idea, he said. (Prime/Ukrainian metal)