Limerick's Aughinish Alumina not hit by Russia sanctions in latest EU draft proposal
Rusal has stressed that it is compliant with EU sanctions which are updated on a regular basis
THE Aughinish Alumina refinery, which employs close to 500 people in West Limerick, is not expected to be hit by economic sanctions aimed at Russia.
In reports this Thursday morning on the European Commission finalising its 22nd package of economic measures aimed to keep the pressure on Russia in its ongoing war with Ukraine, Aughinish Alumina, near Askeaton, is not subject to any penalties.
The plant, whose parent company is Russian aluminium giant Rusal, has been at the centre of controversy over increased exports of alumina to the country.
According to the Irish Times, confidential discussions will take place over the coming weeks between commission officials and senior diplomats from all 27 EU states to sound out support for the draft sanctions package.
An investigation by a consortium of journalists reported that alumina produced in Limerick was shipped to Russian smelters which sell aluminium to a trader that supplies manufacturers linked to Russia's defence industry.
The Irish Times is reporting that the Estonian foreign ministry has said it plans to push for sanctions on alumina.
The paper added that “it is understood the commission had internally debated proposing a quota to limit Aughinish’s exports to Russia, rather than a full export ban. The restriction would have reduced sales to Russia gradually over time, to give the Irish plant a chance to find other markets for its material.”
For its part, Rusal has stressed that it is compliant with EU sanctions which are updated on a regular basis.
However, neither Aughinish Alumina nor its parent company have been targeted with EU sanctions.
Alumina is not a sanctioned commodity, and Irish and European authorities have argued against restrictions because of the potential impact on employment and industrial supply chains in Limerick
As well as providing 475 direct jobs, Aughinish Alumina also supports dozens more positions in sub-supply.
The plant has previously warned that it could be forced to shut its doors if its exports to Russia were barred.
Earlier this year, the managing director of Aughinish Alumina wrote to Enterprise Minister Peter Burke warning at “the potential loss of employment” locally should sanctions be brought in.
He warned restrictions on exports “would leave Aughinish in a position where a significant portion of its alumina would need to be curtailed, reducing efficiency and increasing unit costs.”