Thursday, January 17 2019 11:59

ArmInfo.The U.S. Senate's rejection of a bid to block the easing of sanctions on Russian aluminum company Rusal PLC will have the practical effect of reducing  pressure on an Armenian aluminum mill, reported the Armenian National  Committee of America (ANCA). 

According to the ANCA statement received by ArmInfo. the Armenal mill  employs 700 in Yerevan, indirectly supports thousands of area  families, and exports products to U.S. and other international   markets.  

"While we did not take a position on the broader policy debate over  the lifting of specific sanctions, we do welcome the net effect of  today's vote, which is to ease pressure on a successful,  export-driven Armenian enterprise that employs over 700, supports  many times that number of Armenian families, and exports products to  U.S. markets," said ANCA Executive Director Aram Suren Hamparian.  "The ANCA remains committed to working constructively with  legislators from both parties to address undue, improper, or  unintended consequences of U.S. regional sanctions on Armenia and the  U.S.-Armenia trade relationship." 

Armenal, based in the Arabkir district of Armenia's capital, Yerevan,  supplies aluminum foil for packaged food, beverage, cigarette, and  other export markets primarily in the U.S. and Europe.  U.S. firms  purchasing products from Armenal include Colorado-based Trinidad  Benham Corp and Illinois-based Handi-Foil of America and Durable  Packaging International.  

According to Reuters reports in September of 2018, the Armenal plant,  which produced over 33 tons of foil products in 2017, was set to cut  output in 2018 following initial U.S. sanctions on Russian  businessman Oleg Deripaska and several of the companies he controls.   After extensive negotiations led by U.S. Treasury Secretary Steven  Mnuchin, three of these companies, including Rusal, which is  affiliated with Armenal, now comply with U.S. sanctions laws,  effectively lifting restrictions on exports. Supporters of the  sanctions in the Senate questioned whether Deripaska's divestment  eliminated his actual control of these companies.  

Senate efforts to block the Trump Administration's decision to loosen  sanctions against Rusal and the other two companies associated with  Deripaska were blocked earlier today, falling just short of the 60  votes needed under Senate rules.