According to Reuters report, Rusal’s Armenal plant has started reducing its aluminium foil production due to U.S. sanctions on the Russian aluminium giant, a source at the plant and a source close to Rusal said.
The Armenian aluminium foil is mostly exported to Europe and the United States. The plant, which produced 33,720 tonnes of foil products las year, may temporarily suspend all of its production. The plant currently has 670 employees.
Armenal has seen the demand for its aluminium foil products fall since the Treasury in April imposed sanctions against Russian billionaire Oleg Deripaska and eight companies in which he has large holdings, including aluminum giant Rusal.
No official comment has been issued by Armenal and Rusal on this matter.
The U.S. sanctions hit Rusal’s steady supply of raw materials and products within the group. In September, sources familiar with the discussions told Reuters that European customers would avoid signing 2019 supply agreements with Rusal.
On Friday, OFAC said company’s customers before the imposition of sanctions could sign new contracts with the company without the risk of being hit with “secondary sanctions” themselves.
U.S. customers have until October 23 to wind down business with Rusal.
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