Sanctions spark aluminum pileup for Russian company

The Trump administration’s new sanctions against Russia seem to be having an effect, as a large quantity of aluminum is piling up for one company named on the U.S. government’s blacklist.  

Rusal, one of Russia’s largest aluminum producers, reportedly has massive amounts of unsold aluminum at two production plants in Siberia, sources familiar with the company told Reuters. The stockpile has grown since Trump announced the sanctions earlier this month.

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Shipments of refined aluminum have reportedly stalled for the company, which is now banned from doing business with U.S. customers under the sanctions. As Rusal scrambles to sell off its surplus stock, it has had to rent additional storage space to accommodate it all, Reuters reports. 

The company and its main shareholder, Oleg Deripaska, were named on a sanctions list by the U.S. Treasury Department earlier this month aimed at punishing Russian oligarchs and 12 companies with ties to the Kremlin and its government’s destabilizing activities across the globe.

Rusal’s buyers in Japan and other nations are reportedly looking elsewhere for supply for fear of association with the company, which has reportedly seen a significant drop in share prices since the April 6 sanctions went into effect.

Deripaska, who had other businesses hit by the sanctions, was targeted by the Treasury for profiting from Russia’s aggressive state actions.

Trump has also introduced tariffs on U.S. imports of aluminum and steel in an effort to protect domestic metal production industries that have seen a decline in recent years. Trump has exempted specific countries from the tariffs.