Shares of aluminium giant RUSAL drop by 22%, the biggest fall since April 2018

In Hong Kong, shares of United Co. Rusal International fell as much as 22% as investors watched the dramatic escalation in the West's standoff with Moscow over Ukraine. This is the greatest drop since April 2018, when Rusal was struck by an earlier wave of US sanctions in response to what the US Treasury at the time referred to as Russia's "malign behaviour throughout the world."

The Ukraine situation heightens the dangers for the world's largest aluminium production, as worries grow that escalating tensions or additional fighting in Ukraine could impede trade and lead to further sanctions against Russian firms. The US government has stated that fresh measures would be announced on Tuesday; however it is unclear what those sanctions will be. As the currency plummeted and oil rose, Rusal shares plunged to their lowest level since September.

Rusal accounts for the majority of Russia's aluminium exports, which account for around 5% of world output. Sanctions on the firm in 2018 threw the worldwide market into disarray, resulting in skyrocketing costs and protests from producers who couldn't get metal.

While the United States and its allies have claimed that Russia is planning an assault on its smaller neighbour, Moscow has rejected such preparations. Aluminium soared to its highest intra-day level in more than 13 years on Tuesday, and is close to a new peak. By 11:50 a.m. Shanghai time, the metal was up 1.2 percent to $3 319 per tonne. Nickel prices have risen to their highest level since 2011. Nickel is also a key producer in Russia.

Rusal was one of the major firms sanctioned by the United States. After Rusal's billionaire founder Oleg Deripaska decided to transfer control, the prior limits were withdrawn in January 2019.