Ukraine war: China exporters wary of ‘secondary sanction’ threat for helping Russia skirt alumina ban
- Australia on Sunday imposed an immediate ban on exports to Russia of alumina and aluminium ores, including bauxite, in response to Moscow’s invasion of Ukraine
- The move squeezes Russian aluminium giant Rusal, the world’s second largest producer outside China
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Ordinary Russians feel economic pain of Western sanctions on Moscow over Ukraine invasion
Russia might look to its giant neighbour to replace Australian alumina supplies cut off by sanctions, but Chinese aluminium smelters need all the feedstock they can get and may be worried about secondary sanctions from the West, industry analysts said.
The move squeezes Russian aluminium giant Rusal, the world’s second largest producer outside China.
It gets around 19 per cent of its alumina from Australia’s Queensland Aluminium (QAL), in which it holds a 20 per cent stake.
[China] could also sell some of its domestic production, but note that alumina demand in China is also increasing this year as Chinese smelters lift output after all the power constraint issues in 2021
While there is no concrete evidence that Russia is seeking Chinese alumina supplies, analysts said close ties, proximity and the size of the Chinese market make it a logical option.