Norsk Hydro calls for EU, US sanctions on Russian aluminium - Nasdaq
Norwegian aluminium-maker Norsk Hydro NHY.OL called on Tuesday on the United States and the European Union to stop importing Russian aluminium onto their territories, its chief executive told Reuters, according to Nasdaq.
About half of Europe's aluminium production has been shut down as a result of a surge in energy costs since the start of Russia's operation of Ukraine, while Russian output has been unaffected.
Russia's Rusal RUAL.MM, 0486.HK produces around 6% of the world's aluminium. This metal has not been targeted by Western sanctions against Russia.
But the U.S. is considering restrictions on Russian aluminium imports and the London Metal Exchange (LME), the biggest metals trade hub, is asking members if it should ban Russian material from its system.
Hydro produces most of its aluminium in Europe, Qatar, Brazil and Canada. It has no production in Russia and has stopped trading in Russian aluminium.
Without sanctions against Russian imports, the future for European production would be at risk, Aasheim said, because Europe's producers, facing soaring energy costs, would be unable to compete against Russian rivals.
Aasheim's comments echoed those of U.S. peer Alcoa's AA.N, which is urging the White House to block U.S. imports of the metal from Russia.
With recession looming, however, some business groups say bans on Russian aluminium would decimate European industry.
