According to a report this week, the European Union will most likely back off from prohibiting Russian aluminium imports in the 13th sanctions package. Despite full consent and support from local aluminium producers in Lithuania, Latvia, Estonia, and Poland, the European Union will likely refrain from taking drastic steps like banning Russian aluminium.
Many industrial nations may have opposed the EU's proposed ban, fearing a potential escalation of aluminium prices. Some industrial consumers within the European Union even called this measure a potential "economic tactical nuclear bomb."
Besides being worried about price consequences, industrial nations like Italy were apprehensive of the tight availability of aluminium, a critical component for various industries.
The European Union contemplated introducing the ban, considering the imports from Russia constitute 9 per cent of the EU's total imports and 5 per cent of its total consumption, as noted by the European Aluminium Association. In 2022, these imports were valued at EUR 2.3 billion.
The ban on aluminium would automatically include the energy sourced from Russia, given the latter is a crucial input for the aluminium smelting process.
Recent reports suggest the 13th sanctions package will target 200 entities and individuals and exclude any prominent names. The European Commission reportedly plans to avoid adding new import bans in its following sanctions package to balance economic interests and geopolitical considerations.
Responses
