Russian automaker still buys Rusal aluminium, but mulling alternatives

Despite procuring aluminium from sanctions-hit Rusal, a Russian automobile manufacturer Avtovaz is looking for an alternative source in case the need arises. Nicolas Maure, President of AVTOVAZ, said on Saturday, May 26, 2018, that Rusal is by far its largest aluminium supplier and “a good supplier to keep”.

On April 6, the USA imposed sanctions on Rusal, preventing customers with U.S. exposure from continuing to buy Rusal’s aluminium. The United States later extended the sanctions deadline from June 5 to October 23, 2018.

Maure commented:  "We have about 30 export markets and we do not see any risks [for vehicle supplies to them] as none of them have close ties in the United States. But there are suppliers who could be affected by sanctions, for example Rusal.”

"Rusal is a good supplier which we would like to retain. I know that efforts are under way to ease the sanctions against Rusal, but we are looking at the market to find alternatives if the need arises.”

"The situation will be clarified in the next couple of months. For now there are no problems with supplies from Rusal. But if there is no other option [and we cannot buy metal from the Russian company] we'll have to start getting it from others, both in Russia and abroad.”