Govt to buy aluminum from RUSAL for reserves in case of sanctions

GORKI, Moscow Region, Nov 29 (PRIME) -- The Russian government will buy up to 50,000 tonnes of aluminum or more from UC RUSAL if the company’s exports are hit with sanctions, Industry and Trade Minister Denis Manturov told reporters on Thursday.

On Wednesday, the government signed a ruling to allocate up to 10 billion rubles for the Federal Agency for State Reserves to buy up to 50,000 tonnes of aluminum for the state reserve.

“The earmarked money does not suppose active purchases. We have earmarked the money for a case if some restrictions are slapped on supplies of aluminum to external markets. The agency will be able to swiftly use the possibility,” Manturov said when asked for comment.

The agency will buy the aluminum at market prices, and the government may reuse the measure if the economic situation or external conditions worsen, he said.

When asked about whether aluminum procurement may exceed 50,000 tonnes, he said, “It definitely may happen. If they create restrictions, and if storages overflow, the government may consider additional purchases. But again -- that this is not an issue for today, the reserves that we created are only for an emergency case.”

The U.S. imposed 25% import duties on steel and 10% on aluminum, including imports from Russia. In April, Washington sanctioned several Russian companies and individuals, including tycoon Oleg Deripaska and his aluminum giant RUSAL.

(66.9436 rubles – U.S. $1)

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