Australia prohibits the export of alumina and bauxite to Russia

The Government of Australia, led by Prime Minister Scott Morrison has prohibited sale to Russia for alumina, bauxite and other commodities used as raw materials in the production of aluminium in retaliation to Russia’s invasion of Ukraine.

On 20^th March 2022, Morrison also declared that Australia would donate coal and further military amenities to Ukraine incorporating a new aid package that also comprises $30 million in emergency humanitarian assistance.

The Prime Minister stressed himself by quoting, “Russia must pay a very high price for its brutality. It must pay that price economically. It must pay the price in diplomatic terms as well.”

The alumina and aluminium ore export ban targets to impact aluminium production in Russia, which generally depends on Australia for 20% of alumina.

However, this ban has just come within three days, following the Australian government’s sanctions on Russian Oligarch Oleg Deripaska, the founder of Russian aluminium giant Rusal and which holds a 20% stake in Queensland Alumina Limited, a major employer in Gladstone, where the majority stake owner Rio Tinto has already announced to cut-off all its ties with Russian entities.

Following the sanctions on Deripaska, the Australasian Centre for Corporate Responsibility, an advocacy organisation, seeking a downright ban on Rusal exporting alumina manufactured in Australia to Russia.

The world’s leading low-carbon aluminium producer, Rusal said in a statement, “Mr Oleg Deripaska had surrendered his majority interest and control over Rusal and its parent company, En+ Group, after an agreement with the US Treasury following sanctions in 2019.”

“According to the agreement with the US Treasury, which removed Mr Deripaska from the control of the business, and which remains effective and ongoing, Mr Deripaska cannot receive any type of financial benefit from his minority holding in EN+, RUSAL or any part of the Group and is completely blocked from receiving dividends.”