The Russian aluminum giant Rusal said, on Friday, that it was affected by international sanctions, especially what caused the slowdown in Russian demand, announcing a sharp decline in its net profit in the first half.
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Net profit fell 16.7% in the first half year on year to $1.68 billion, according to figures released Friday in a statement.
The group, founded by oligarch Oleg Deripaska, notes that “increased geopolitical tensions since February 2022 have significantly increased volatility in the commodity and currency markets.”
These tensions, caused by the ongoing Russian attack on Ukraine since February 24 and the ensuing international sanctions against Moscow, “negatively affected the activities of Russian companies in various sectors of the economy, which led to a decline in demand for aluminum in Russia,” the statement said. He said.
Moreover, Australia’s ban on the export of alumina, from which aluminum is then extracted, as well as the suspension of production at the alumina refinery in Mykolaiv, Ukraine “had a negative impact on deliveries of raw materials for aluminum production. It caused increased expenses.”
The press release notes that the Russian group is “obligated to return its series of shipments.”
For their part, he added, “investment projects and modernization programs for production facilities can be postponed due to difficulties in delivering equipment.”
A very large number of Russian economic players are facing serious problems with the supply of equipment and spare parts, the sale of which to Russia is prohibited.
They are also struggling to import or export, as international logistical and financial chains have been partially paralyzed by retaliatory measures imposed by Europe and the United States.
However, sales of the Russian aluminum giant – listed on the Hong Kong Stock Exchange – rose 31.3% in the first half of the year year on year to $ 7.2 billion.
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