The U.S. Treasury Department said April 6 that it was imposing sanctions against 38 Russian businessmen and high-ranking officials, including Oleg Deripaska, the owner of one of the largest world manufacturers of aluminium companies “RUSAL”.
Latest U.S. economic sanctions against the Russian businessmen were influenced not only by the price of aluminium, but other metals too, reports Bloomberg. Nickel prices rose to a three-year high, gaining 5.4% on April 19. Only aluminum increased by 7.1% since the beginning of the month prices rose by 30%.
The rising price of aluminum was justified, as the market realized how RUSAL entered the aluminum market, the expert explains to Bloomberg mark Keenan, the head of Asia commodities research at Societe Generale SA. RUSAL produces about 6% of the world’s aluminum, and so it is one of the largest suppliers in the world.
However, Deripaska’s business, or any other sanctions businessmen not directly connected with the production of Nickel. While mark Keenan indicates that 25% stake Deripaska in GMK “Norilsk Nickel” one of the largest producers of Nickel in Russia could be behind this, another Bloomberg expert Colleen Hamilton believes that he was just an “interpretation” on the market. Keenan supports his idea, indicating that the palladium, which is mined together with Nickel, have not seen the same growth.
Sam Bloomberg suggests that traders may believe that other Russian mining and recycling companies could face the same fate as “RUSAL”, being amazed by the sanctions.
RUSAL is Russia’s largest aluminium producer and one of the largest suppliers of metal and also alumina. Its production traded on the major commodity markets. The company owns mines, refineries and metallurgical plants not only in Russia but throughout the world, e.g. in Ireland and Jamaica. Aluminium is used in the production of various kinds of goods ranging from cans to Boeing and Ford.
On 6 April, the US imposed economic sanctions against 38 Russian businessmen and senior government officials to the alleged attack by poisoning the country’s former intelligence officer Sergei Skripal and his daughter in the UK. The company of Oleg Deripaska “RUSAL” has suffered from the recent sanctions.
Yulia and Sergei Skripal was poisoned in the British city of Salisbury on 4 March. The couple was found on a bench near a shopping center in critical condition. Officials of great Britain, namely the Minister of foreign Affairs of Boris Johnson and Prime Minister of great Britain Theresa may has accused Russia of poisoning as C-234 nerve gas supposedly produced in the USSR, despite appropriate investigation of the incident was conducted. In the subsequent solidarity with the United Kingdom, several other Western countries expelled Russian diplomats for alleged poisoning.
The Russians denied all the accusations in the country and demanded access to the investigation materials in accordance with international law, as well as consular access to its citizens. However, these requests were not heard. Later Moscow expelled diplomats from those countries which joined the British punitive measures, and ordered the British Council to cease its activities in Russia in response to move in London.
Sourse: sputniknews.com
