Due to Russia’s ‘illegal’ assault on Ukraine, Australia has banned the export of aluminium ores to the country
Expanded restrictions are aimed at limiting Russia’s capacity to produce aluminium, which is essential in the production of weaponry and munitions.
In response to Russia’s “unrelenting and illegal aggression” against Ukraine, Australia has banned the sale of alumina and aluminium ores to the country.
On Sunday, Australian Prime Minister Scott Morrison said that Australia would provide coal and more military equipment to Ukraine as part of a new aid package that also includes $30 million in emergency humanitarian help.
“Russia must pay a hefty price for its ruthlessness. “It has to pay that price economically, and it has to pay that price diplomatically as well,” Morrison said.
It comes as Australia’s foreign minister, Marise Payne, called Russia’s actions in Ukraine “war crimes” and warned, “innocent civilians and civilian infrastructure” were being attacked.
The federal government has come under fire for allowing alumina to be exported to Russia, with critics claiming it was allowing Australian resources to be used in armaments production.
To limit Russia’s ability to produce aluminium, a key Russian export and a critical component in guns and ammunition, the government declared overnight that all shipments of alumina and aluminium ores, including bauxite, would be halted.
Russia imports 20 percent of its alumina from Australia.
The government stated that it would collaborate with “exporters and peak organisations that would be impacted by the prohibition to locate new [markets] and grow existing markets.”
The sanctions are anticipated to affect Queensland Alumina Ltd (QAL), a joint venture between Rio Tinto and Russia’s Rusal International, the world’s second largest aluminium producer.
Sanctions on two Russian businessmen, Viktor Vekselberg and Oleg Deripaska, were announced last week and had an impact on QAL.
Deripaska controls 20% of the QAL, a key employer in Gladstone, through a firm he formed.
The Australasian Centre for Corporate Responsibility, an advocacy group, advocated for a complete ban on Rusal exporting Australian alumina to Russia following the Deripaska sanctions.
The restriction, according to Dan Gocher, the center’s climate and environment director, addresses concerns about Australian alumina being used in Russian armaments manufacturing.
He added, “The secondary worry is that Deripaska and Vekselberg still stand to profit from Queensland Alumina.” “If the government does not censure Rusal, Rio Tinto will have to quarantine any profits.”
Following an agreement with the US Treasury following sanctions in 2019, Rusal and its parent company, En+, declared in a statement that Deripaska had surrendered his majority interest and control over Rusal and its parent company, En+.
“Mr Deripaska cannot receive any type of financial benefit from his minority holding in EN+, RUSAL, or any part of the Group, and is completely blocked from receiving dividends, pursuant to the agreement with the US Treasury, which removed Mr Deripaska from control of the business and which remains effective and ongoing.”
Vekselberg was an indirect minority beneficiary, according to Rusal, and had no influence over the company’s operations.
Rio Tinto’s spokesman said the corporation had already said that it was suspending any commercial links with any Russian entity.
“Our top goal continues to be the safety and well-being of our people, communities, and businesses, in complete compliance with all legislative directives, including the Queensland Alumina Limited joint venture.”
A fresh large aid and assistance package for Ukraine has also been revealed by the Australian government. A donation of 70,000 tonnes of thermal coal was included in the package to help Ukraine with its energy security.
Whitehaven Coal, which has arranged the shipment, will supply the coal. The supplies are being delivered by Australia in collaboration with Ukraine and Poland.
