Rusal 00486 has made a rigorous assessment of the threats it faces at a time when the Russian economy is increasingly isolated, including potential shortages of raw materials, irreplaceable market losses and rising funding costs.
The company is fighting the negative effects of the war between Russia and Ukraine. The war triggered comprehensive economic sanctions, including Australia's ban on the export of alumina to Russia.
Rusal said in its earnings report that Australia's ban on alumina supply would affect alumina exports, which account for nearly 20 per cent of Russian aluminium demand. An alumina plant operated by the company in Ukraine was also forced to stop operation, while a plant in Ireland was also uncertain.
The company also said that investment could be delayed due to a shortage of equipment. The company added that its financial performance would be hit because of high domestic interest rates and the need to replace foreign currency credit facilities with rouble-denominated debt. Rusal said: "if the situation continues or continues to develop significantly, including the loss of a large number of foreign markets that cannot be redeployed to new markets, it could affect business, financial position, prospects and operating results."
Unable to accurately assess the quantitative effects of all restrictions and effects, Rusal warned that the situation could be worse if more sanctions or countermeasures were introduced against Russia.
