An embargo would likely disrupt the industry and lead to mass business closures, organizations say
Five industry associations have called on the EU to prevent a potential ban on Russian aluminum, which they say could decimate the industry across the bloc, Reuters reported on Monday, citing a statement from the groups.
The Federation of Aluminum Consumers in Europe, the German Federal Association for Economic Development and Foreign Trade, the Italian Association of Foundry Suppliers, the Italian National Association of Steels, Metals, Scrap, Hardware and the Association Italian smelter said in a statement that sanctions against the Russian metal could put thousands of companies out of business.
In a joint letter to the EU authorities, they “called for the urgent intervention of the European Commission and EU Member States against threats of bans, high tariffs or sanctions on Russian aluminum which pose an imminent and vital threat to the industry aluminum industry.”
Russia is the world’s second largest aluminum producer after China. Although the crucial metal has not been subject to Western sanctions, the US government is reportedly considering banning Russian imports, while the London Metal Exchange, the world’s largest metals trading hub, is considering to remove Russian aluminum from its system.
Data cited by Bloomberg shows that Russian supplies have traditionally accounted for around 10% of total US aluminum imports.
While experts warn that such a move could destabilize metals markets around the world, European industry associations have openly stated that those advocating a ban on Russian aluminum “Either are its main competitors or they benefit from supply options that are not available to the vast majority of the European aluminum value chain.”
Small businesses would be the most affected by an embargo, which could result in “thousands of business closures and tens of thousands more unemployed in Europe as a direct consequence”, read the statement. RT
