Hydro to declare force majeure on Rusal's certain contracts
Hydro has notified Rusal it may be necessary to declare force majeure on certain contracts, as the company could be prevented from upholding its obligations due to the US sanctions list issued on April 6, at least from June 5. Hydro estimates the potential impact on its production and customers would not be significant, neither upstream nor downstream.
As a global aluminium company active throughout the value chain and present in around 40 countries throughout the world, Hydro interacts commercially with all the main companies in the industry. Hydro will utilize its strong market presence to mitigate potential impact arising from the US sanctions, aiming to minimize the effects on its customers.
The US sanctions list has caused uncertainty in world aluminium markets since it includes Rusal, one of the world’s biggest producers of primary aluminium. While it is too early to say how this may impact the global industry going forward, Hydro monitors the situation closely and is evaluating possible longer-term effects. Hydro will aim to continue business as usual, ensuring that the company and its customers do not run any risk of breaching US sanctions against Rusal.
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