Rusal says Windalco unaffected by sanctions
Published:Friday | March 11, 2022 | 12:09 AM
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The bauxite/alumina operations of Windalco have not been affected by the sanctions imposed on Russia so far, its owners say. As the conflict between Russia and Ukraine intensifies, the Jamaican government is mulling various scenarios, with one...
The bauxite/alumina operations of Windalco have not been affected by the sanctions imposed on Russia so far, its owners say.
As the conflict between Russia and Ukraine intensifies, the Jamaican government is mulling various scenarios, with one possibility being the acquisition of the asset to avoid inadvertently violating sanctions against Russia for waging war on its neighbour.
Neither UC Rusal nor its subsidiaries have been sanctioned, a Rusal spokesman told the Financial Gleaner.
“Sanctions do not affect Windalco’s production at present. Currently, Rusal’s aluminium, alumina and bauxite productions are operating normally, even though alumina production in Ukraine has been stopped due to the recent events,” said Dmitriy Simakov on behalf of UC Rusal.
Windalco supplies minerals to Rusal’s plant in Siberia, Russia, where the company produces aluminium for global consumption.
“Rusal has always been compliant with high standards of transparency and compliance. The company is managed by an independent board of directors, which consists of citizens of various countries, including UK and USA,” Simakov said.
Windalco generated 448,000 tonnes of alumina in 2021, down 14.4 per cent relative to 2020. It also generated 1.86 million tonnes of bauxite in 2021, up 6.4 per cent.
Years ago, the principal owner of UC Rusal, Russian oligarch and industrialist Oleg Deripaska, removed himself from the operations of the company amid a round of Russia-targeted sanctions. Up to 2020, Deripaska held 56 per cent of UC Rusal.
“Since Rusal’s removal from the special designated nationals, or SDN, sanctioned list by OFAC, Mr Oleg Deripaska does not retain any control on the company,” Rusal said.
OFAC stands for the Office of Foreign Assets Control, a unit of the US Treasury Department. Its SDN list names persons blocked from doing business with the United States.
Russia invaded Ukraine in late February and has been mainly condemned by the international community for its action, and sanctioned. It has been cut off from the international payment system called SWIFT, making it difficult to trade with other countries. And this week, the United States took the decision to ban Russian oil.
Russia has described the oil ban as an ‘economic war’ against it by the US.
Jamaica owned a piece of Windalco up to 2014, when it offloaded its final 7.0 per cent stake to UC Rusal for US$11 million, which was used to partially offset a US$21-million debt to the Russian company.
The country did US$68 million worth of trade with Russia in 2020, and US$45 million over the period January to October 2021, most of which relate to the export of bauxite and alumina.