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Russian hydropower: Sanctions cast a shadow over the prospects of the company joining the Rusal Smelter project
Nikolai Shulginov, head of the Russian hydropower company, said on Monday that Rusal hopes to build a new aluminum smelting project in Siberia, but the current Russian hydropower company's plan is complicated by US sanctions.
RUSAL is now the second largest aluminum producer in the world. The project was put on hold in 2009 due to weak aluminum prices, but as the price rebounded, the project resumed work last year. In April of this year, the Russian Hydropower Board of Directors approved a plan to join the project with a total investment of approximately US$1 billion. But since the United States imposed sanctions on seven Russian oligarchs, including Oklahoma’s former controlling shareholder Oleg Deripaska, the situation has become complicated.
Shulginov told reporters at a newly launched power station. "A few months ago, before the sanctions were strengthened, we were in a decisive phase of joining the project under certain conditions. The US sanctions against RUSAL caused serious problems in the global aluminum market. Destruction. Rusal accounted for more than 6% of global aluminum supply last year, estimated at about 63 million tons.
Shulginov stressed, “Now, considering the situation of sanctions, everything has changed. We have to re-plan the structure of the project, aluminum prices, electricity prices and so on.” The state development bank VEB has suspended funding for the construction of the Taisset aluminum smelter, but has not suspended the deal. The Taichte Aluminum Plant is expected to raise a total of US$1 billion, of which 30% will be provided by the Russian State Development Bank.