Rusal, the Russian aluminum giant, reported a sharp decline in net profit in the first half of 2022 on Friday, mainly due to international sanctions that have caused Russian demand to slump.
Net profit fell 16.7 percent in the first half of the year to $1.68 billion, according to figures released in a statement by the Russian group.
Founded by oligarch Oleg Deripaska, the group pointed out that “growing geopolitical tensions since February 2022 have significantly increased volatility in commodity and currency markets.”
These tensions caused by the Russian-Ukrainian conflict since February 24 and the international sanctions against Moscow that followed “have negatively affected the activities of Russian companies in various sectors of the economy, resulting in a decrease in demand for aluminum in Russia,” the statement said.
In addition, Australia’s ban on the export of alumina, from which aluminum is extracted, and the suspension of production at the alumina refinery in Mykolayv, Ukraine, “have had a negative impact on the delivery of raw materials for aluminum production and caused an increase in expenses,” the same source explained.
The Russian group “is forced to redo its supply chain,” the statement said.
A large number of Russian economic players are facing serious problems with the supply of equipment and spare parts, the sale of which to Russia has been banned.
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