SHANGHAI, Mar 2 - Hit by sanctions against Russia and growing concerns about the Russia-Ukraine conflict, the share prices of Rusal in the Hong Kong Stock Exchange have suffered a cumulative decline of 60% in nearly 10 trading days.
As the Russian-Ukrainian crisis intensified, the United States and many Western countries imposed sanctions, and as much as half of Russia's international reserves were frozen abroad. At the same time, the Central Bank of Russia imposed capital controls and prohibited foreigners from selling securities in Russia.
Rusal issued an announcement early on Tuesday in which it mentioned the temporary closure of Nikolaev alumina refinery in Ukraine's Nikolaev region, citing the inevitable logistical and transportation challenges in and around the Black Sea. Rusal said that while alumina production in the region will be severely cut in the short term, there will be no immediate wider impact on production of its aluminium smelters, and the company is regularly reviewing future alumina demand. This announcement also confirms the market's previous speculation that the conflict between Russia and Ukraine will limit the production and business operations of Rusal.
