Published:  01:01 AM, 11 September 2018

'Sanctions cloud prospects for joining Rusal's smelter'

'Sanctions cloud prospects for joining Rusal's smelter' Russian President Vladimir Putin shakes hands with Nikolai Shulginov, the head of state hydropower producer RusHydro in Amur region, Russia. -Reuters

Plans by Russia's power company Rushydro to join a new aluminum smelter project that Rusal wants to build in Siberia, have been complicated by international sanctions, Rushydro's head Nikolai Shulginov said on Monday. Rusal, ranked the world's No.2 aluminum producer after China's Hongqiao, started work on the Taishet project in 2006. 

The project was mothballed in 2009 due to weak aluminum prices, but dusted off last year last year as prices recovered. In April, Rushydro's board approved the move to join the project with total investments seen at around $1 billion.

The United States imposed sanctions on seven Russian oligarchs, including Rusal's former president Oleg Deripaska, and the 12 companies they own or control in April, in response to what it termed "malign activities" by Russia."The thing is that the situation has been changed," Shulginov told reporters at a newly launched power station. 

---Reuters, Vladivostok

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