Plant "Rusal" in Armenia began to reduce production due to sanctions

ArmInfo.Foil rolling plant "Rusal" in Armenia - "Armenal" - began to reduce capacity with the transfer of employees to part-time jobs, sources told RIA  Novosti, familiar with the situation.

The reason, according to the agency's interlocutors, was a decrease  in demand for Armenal products due to restrictions on the part of the  US, imposed on April 6 against Oleg Deripaska and his controlled  companies, including Rusal.

According to sources, the US sanctions led to a decrease in the  production of "Armenal" and could lead to a complete shutdown of the  plant. According to the information of the plant's employees, the  production units have now been switched to idle mode with payment of  2/3 of the average wage. Until the end of September, 184 employees of  the production directorate, and later other departments and services  will be sent to the forced simple one. In all, the company employs  670 specialists. "Armenal" provides 5% of Armenia's exports and more  than half of the country's exports to the United States. Most of the  products produced at the plant are destined for consumers in North  America and Europe. This information was confirmed by a source close  to Rusal. The aluminum company declined to comment.

In August, sources close to Rusal reported to RIA Novosti that the  aluminum giant, if the sanctions remain in place, could start saving  most of its production capacities in September. At the same time, in  August, Rusal began to conserve the electrolysis capacities of the  Nadvoitsky aluminum smelter in Karelia, whose products were  completely oriented to the American market. The US introduced new  sanctions against the Russian Federation in early April, including a  number of large Russian businessmen and companies controlled by them,  in particular Oleg Deripaska and the controlled En + Group and Rusal,  into the so- called "black list" (SDN list). Adding to the list means  blocking assets in the US and prohibiting any business with these  companies for US citizens, including any transactions with debt and  equity instruments.  The US Ministry of Finance gave the deadline  until October 23 to complete operations with the shares and debt  instruments of the company, as well as to withdraw from contracts  with Rusal.