German companies in support of sanctions against Russia knowing possible impact on aluminium supplies

Last week, Germany’s BGA trade association’s survey showed that German businesses abetted Berlin’s economic sanctions against Russia for its invasion of Ukraine, knowing the ensuing economic slowdown that it could usher or threaten the supply of aluminium.

German companies are joining each other in support of imposing sanctions on Russia.

While corresponding with the press about the survey, BGA President Dirk Jandura pointed out that the constriction in the aluminium supply chain could turn the industry economic growth, as was predicted earlier, upside down.

BGA added about two-thirds of its members expect an economic slowdown due to the sanctions.

Although Germany’s trade with Russia accounts for only 3 per cent of its total overseas trading yet it is facing a challenge due to disruptions in supplies with other countries and heightened prices of aluminium.

Carlos Tavares, chief executive of Stellantis, expressed the same opinion while speaking with reporters that sanctions on Russian aluminium and other products would inevitably cause havoc on several industries in the coming weeks and months.

He noted that escalation of aluminium price together with higher energy costs would put more pressure on the business model.

Andreas Weller, chief executive of European aluminium supplier Aludyne, said that hike in raw material costs has already begun putting them in uncomfortable conversations with his firm’s buyers.