Russian-based company, Rusal, is slated to make its first investment in the United States of America. The announcement and pending investment follow Washington’s sanctions being lifted against the said company.
Why the Ban
According to the Financial Times, the Russian aluminum giant was previously owned and operated by Russian oligarch Oleg Deripaska. In 2018, the United States carried out sanctions against the aluminum manufacturer as well as its co-owner, Deripaska reports Reuters. The restrictions imposed by the United States government and the Trump administration was made to help eliminate the scope and reach of Vladimir Putin and the Kremlin in the 2016 election, states CNN.
With Rusal bearing close ties to Putin through Deripaska, the sanctions were then carried out with the aforementioned agenda.
CNN reports that Democrats are not in favor of lifting the sanctions on Rusal and its parent company, En+, as well as other firms, where Deripaska has great control of. However, only less than three months from its removal from the blacklist, Reuters notes that the aluminum giant is back in business.
Partnership and Investment
Having lessened the control and involvement of Oleg Deripaska in his companies, the penalties incurred by Rusal has been lifted earlier in January.
After the ban has been lifted, the firm is in the talks of working with Braidy Industries, a startup company in the United States. CNN reports that the joint venture is expected to build a 2.5 million-square-foot mill in Kentucky. It will specialize in manufacturing and providing aluminum made for automobile makers and aerospace industries.
The Russian company will reportedly invest $500 million worth of carbon-aluminum for the next 10 years. According to Financial Times, it will be supplying the Kentucky-based mill with 2 million tonnes of metal.
Reuters notes that in this venture, 40% will be owned by Rusal.
