German press says US kneecapped itself with its sanctions on Russian aluminum
US backs off on sanctions against Rusal
German Business News: The US sanctions against aluminum producer Rusal seem to be a shot in their own knees: After the US government found that the price of aluminum went up as a result of uncertainty about the future of Rusal, US companies, and the massively hit western allies, the government in Washington backpedaled on Monday.
US Treasury Secretary Steven Mnuchin said in a statement: “Rusal has felt the impact of US sanctions for its involvement with Oleg Deripaska, but the US government is not targeting the hard-working people who depend on Rusal and its affiliates. Rusal approached us to request removal from the list. Given the impact on our partners and allies, we have decided to postpone the resolution and dismantling phase while reviewing the request from Russia. ”
Speculators who had anticipated the collapse of the US were also able to make a cut: Rusal’s shares rose 15 percent to 26.39 rubles, during trading on the Moscow exchange on Monday. according to a statement by the US Treasury
Mnuchin, who formerly worked for Goldman Sachs, said that if Kremlin-affiliated billionaire Oleg Deripaska sold its stake in Rusal, the world’s second-largest aluminum producer, the US could ease or lift sanctions. The US government also extended the time limit for US and non-US citizens doing business with Rusal for almost five months to October 23. Since the sanctions on Rusal were introduced on April 6, global aluminum prices have risen by as much as 30 percent.
Foreign leaders such as French President Emmanuel Macron have asked US President Donald Trump to withdraw the sanctions. Rusal contributes six percent of the world’s aluminum supply.
The sanctions imposed on Rusal by the US government in early April had led to major distortions on the world commodity markets. Not only prices for aluminum and aluminum oxide, but also the prices for metals such as nickel and palladium, where Russia has a strong position in world markets, have increased.