Russian "Rusal" closes Nadvoitsky plant due to US sanctions

Russian Rusal, the world's largest aluminum producer outside China, has begun shutting down production at one of its smaller plants as a result of US sanctions against the company, Rusal officials said on Monday.

Operations at the Nadvoitsky aluminum smelter in Russian Karelia cannot continue as the smelter has lost access to its end market and to a constant supply of raw materials since then, as Washington imposed sanctions on Rusal on April 6.

The sanctions, aimed at punishing Moscow for alleged meddling in the 2016 US elections, would require US clients to end their business with Rusal by October 23rd. Manufacturing at the Nadwaith plant was entirely focused on the American market.

“As a result, since April 2018, Nadvoitskiy has been sending all his products to the warehouse, creating significant losses,” a company spokesman said.

“Rusal was forced in August to start closing the electrolysis pots in Nadvoitsky,” he said.

According to the state development fund, the plant employs 343 people and is the main source of employment in the city of Nadvoitsy, which is located 485 km north of St. Petersburg.

“The plant's employees will not be harmed despite the (closure), as the company will provide a personalized approach to staff recruitment,” Rusal said, adding that workers will be offered work at another company, helping to find work in other parts of the country, or with pay. agreed by both parties.