EU business groups oppose sanctions on Russian aluminum – Reuters
European industry associations have urged EU authorities to prevent a ban on Russian aluminum, Reuters has reported Read Full Article at RT.com
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An embargo would likely disrupt industry and lead to massive company closures, the organizations say
Five industry associations have called on the EU to prevent a possible ban on Russian aluminum, which they say could decimate industry across the bloc, Reuters reported on Monday, citing a statement by the groups.
The Federation of Aluminum Consumers in Europe, the German Federal Association for Economic Development and Foreign Trade, the Italian Foundry Suppliers’ Association, the Italian National Association of Steels, Metals, Scrap, Hardware, and the Italian Foundry Association have said in a statement that sanctions on the Russian metal could put thousands of companies out of business.
In a joint letter to the EU authorities they “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.”
Russia is the world’s second-largest producer of aluminum after China. Though the crucial metal hasn’t been subject to Western sanctions, the US government is reportedly considering a ban on Russian imports, while the London Metal Exchange, the world’s largest metal trading hub, is mulling withdrawing Russian aluminum from its system.
READ MORE: Aluminum market braces for turmoil
Data cited by Bloomberg shows that Russian supplies traditionally account for some 10% of total US aluminum imports.
While experts warn that such a move could destabilize metal markets around the globe, European industry associations have openly said that those advocating a ban on Russian aluminum “are either its main competitors or they enjoy supply options that are not available to the vast majority of the European aluminum value-chain.”
Small companies would take the biggest hit from an embargo, which could result in “thousands of company closures and tens of thousands more unemployed in Europe as a direct consequence,” the statement reads.
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