The European Commission is preparing to propose a ban on the import of Russian primary aluminium as part of its 16th sanctions package against Russia. This initiative follows Russia’s continued invasion of Ukraine and aims to tighten economic restrictions on Moscow.
Details of the Proposed Ban
According to a Reuters report, the European Union (EU) aims to adopt the sanctions package in February 2025, coinciding with the third anniversary of Russia’s full-scale military aggression against Ukraine. Informal discussions have been held between EU member states to finalise the details of the package, which would include the aluminium import ban.
While the EU has already restricted certain aluminium products—such as wires, pipes, and foil—these account for less than 15% of the bloc’s total aluminium imports. Primary aluminium, which is crucial for industries like transport, packaging, and construction, is currently exempt. Aluminium’s lightweight properties make it particularly valuable for manufacturing electric vehicle components.
A Divergent Approach Compared to Other Allies
The United States and the United Kingdom imposed bans on Russian aluminium imports in 2024, but the EU refrained due to resistance from some member states. However, as the conflict persists, there is growing momentum within the EU to align its trade policies more closely with its Western allies.
Market Response
News of the potential ban has already influenced the global aluminium market. On the London Metal Exchange (LME), benchmark aluminium prices rose to $2,602 per tonne, their highest level in nearly a month, before slightly easing to $2,576.50 per tonne—a 0.1% decline.
Declining Russian Aluminium Imports
Data shows that the EU’s reliance on Russian aluminium has decreased significantly over the past two years. From January to October 2024, the EU imported approximately 130,000 metric tonnes of Russian primary aluminium, constituting 6% of its total aluminium imports of 2.2 million tonnes. This marks a sharp decline compared to 11% and 19% in the corresponding periods of 2023 and 2022, respectively, according to Trade Data Monitor.
Shift to Alternative Suppliers
The anticipated ban is expected to intensify competition for aluminium supplies from other regions, particularly the Middle East. Aluminium-producing countries such as the United Arab Emirates and Bahrain are likely to become key suppliers to both EU and US markets. In 2024, the Middle East accounted for nearly 9% of global aluminium production, according to the International Aluminium Institute.
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