Russian Aluminum Magnate Says Moscow Will Lose Important Export Channel Due To US Tariff

Moscow will lose an important export channel for its aluminum when a 200% tariff imposed by the United States on Russia's aluminum supplies comes into effect, Oleg Deripaska, a Russian businessman and the founder of the second world's largest aluminum company, UC Rusal, said on Thursday.

MOSCOW (UrduPoint News / Sputnik - 02nd March, 2023) Moscow will lose an important export channel for its aluminum when a 200% tariff imposed by the United States on Russia's aluminum supplies comes into effect, Oleg Deripaska, a Russian businessman and the founder of the second world's largest aluminum company, UC Rusal, said on Thursday.

Last week, US President Joe Biden signed a proclamation to impose a 200% tariff on Russian aluminum. Beginning on March 10, 2023, a 200% tariff will be applied to aluminum articles and derivative aluminum articles that are produced in Russia. Starting April 10, 2023, the tariff will also be imposed on aluminum articles where "any amount of Primary aluminum used in the manufacture of the aluminum articles is smelted in Russia.

"

"The tariff is prohibitive, which means that we have been cut from one more significant export channel," the businessman said.

Deripaska refused to say where Russia could redirect its aluminum exports after the US measure goes into effect.

"It's a military secret," he said.

Experts told Sputnik that Russia had been exporting relatively small amounts of aluminum (400,000-500,000 tonnes a year) to the US. However, it would be difficult and could take a considerable amount of time to redirect these supplies to other markets, according to the experts.

Russia's exports of aluminum amounted to around 3.5 million tonnes in 2021, according to the Russian Federal Customs Service, with final figures for 2022 yet to be published.