The battle for Russian aluminium continues Stainless Espresso 1200x630 1

21 March 2024 – The battle to extend EU sanctions to Russian raw aluminium continues with sometimes contradictory reports. And the US Federal Reserve is signalling optimism for the domestic economy.

The battle for Russian aluminium continues

After the European Union refrained from imposing new measures against Russian aluminium exports in its last sanctions package against Russia, the issue is still not off the table.

Over the past few days, contradictory reports have been disseminated via the media and press, which at first glance provide a rather unclear picture of what is currently happening with regard to Russian aluminium.

What Russian aluminium is already sanctioned

Most processed aluminium products of Russian origin are already sanctioned by the European Union. Since April 2022, flat rolled products and since December 2023, import restrictions on bars, wire, foil and tubes have been added.

Who is pursuing which interests here?

The EU producers’ association European Aluminium (EA) has been lobbying for some time for Russian raw aluminium to be added to the EU sanctions list. So far, however, EA has not been able to push through this demand.

A few days ago, the other side caused some confusion with a press statement. The largest Russian aluminium producer, Rusal, apparently saw itself as the main target of EA’s renewed and most recent demands for sanctions, which also threatened its European companies, and directly attacked the manufacturers’ association in the media.

Propaganda battle likely to continue

A decision in this propaganda war has not yet been made on the EU side. In view of the EU Critical Raw Material Act and the astronomically high demand that the European Commission sees coming for aluminium in particular by 2030, this media propaganda battle is likely to continue for a while yet.

The aftermath of US tariffs on aluminium imports

As an EU JRC Science for Policy Report from 2021 shows, the Commission is presumably aware of what it would mean to fully sanction a producer like Rusal without having an adequate replacement supplier for almost 600,000 tonnes of raw aluminium.

The US Federal Reserve is signalling optimism for the economy

Despite unchanged key interest rates, the Fed is forecasting significantly stronger growth of 2.1 per cent for 2024, a sharp jump from the previously expected 1.4 per cent. Growth expectations for 2025 also remain high at 2.0 per cent, a sign of continued stability and prosperity.

Robust economic situation and falling unemployment

At the same time, the Fed sees a slight rise in inflation, but a robust economic situation and falling unemployment should offset this.

Markets optimistic

The moderate interest rate cuts indicated for 2024 are strengthening optimism on the market, which is reflected in rising share prices and a record high for the S&P.

Latest news

Receive all the latest news once a week

Receive all the latest news once a week

Make it easy for yourself: we will remind you once a week about the latest news.

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!