Will The EU Ban Russian Aluminum?
Aluminum is also quite different from other raw materials, such as the much rarer uranium used in the nuclear industry. It is easy to obtain, produced all over the world, and easy to transport.
Given that the EU is now producing even more aluminum and importing it from new partners in Iceland, Mozambique, and Norway, supply is far outstripping demand.
Drilling Down
· There are still a number of issues that need to be overcome. While the dependency on Russian aluminum in general has reduced across the EU, a few EU member states — most notably Greece — still rely on Moscow for most of its imports of the metal. And as always with sanctions, all 27 EU member states need to sign off on them.
· Officials from the European Commission have also said there are three areas that Brussels, out of principle, won’t target with sanctions: food, drugs and medical equipment, and critical raw materials. Aluminum is classified as a critical raw material by the EU, even if there might be an abundance of it on the market right now.
· The European Commission is aware of another obstacle. If sweeping sanctions on aluminum were to be introduced, some member states could ask for exemptions. Greece would be an obvious candidate. This is what happened when the EU introduced sanctions on Russian steel imports in 2023. A few EU member states won derogations, allowing them to ignore the measures until 2028, distorting the bloc’s internal single market and giving those countries a competitive advantage.
· In the steel industry, there are certificates of origin, which establish the country where the alloy comes from and where it was manufactured. What concerns the EU is that there is no such thing in the aluminum industry, which makes it easier for Moscow to circumvent sanctions. A system similar to the one for steel could be created for aluminum, but it would probably require a sustained global effort to be effective, and this could prove time-consuming.
· Future sanctions in this field will also depend on EU-U.S. cooperation and coordination. The United States doesn’t have any sanctions on Russian aluminum, but it has slapped a 200 percent tariff on the metal. Washington and the EU could also impose sanctions on RUSAL, the Russian state-owned aluminum giant.
· The United States has previously targeted the company. In 2018, the White House imposed sanctions on the company’s then boss, oligarch Oleg Deripaska, and all his businesses due to “Russia’s malign activity.” (While the measures were lifted one year later, it does show that sanctions targeting aluminum haven’t always been off the table.) With Deripaska on the EU’s blacklist since April 2022 due to his economic support of Russia’s war in Ukraine, some EU officials believe that there is room to go even further.
Rikard Jozwiak is the Europe editor for RFE/RL in Prague, focusing on coverage of the European Union and NATO. This article is reprinted with permission of Radio Free Europe/Radio Liberty(RFE/RL).