Arab Times

Sanctions impact casts shadow over Rusal profit jump


Russian aluminium giant Rusal on Friday warned of expected harm to its business from US sanctions, sending its shares down more than 7 percent despite the company reporting a 20 percent jump in firstquart­er core profit.

Washington last month announced sanctions on Russian billionair­e Oleg Deripaska and several companies in which he is a large shareholde­r, including Rusal, En+ Group and GAZ Group, in response to what the United States said were Russia’s “malign activities”.

Though Rusal, the world’s biggest aluminium producer, said longer-term effects of the sanctions and the threat of additional future sanctions are difficult to determine, the company said it warned that the impact is highly likely to be “materially adverse”.

“In present circumstan­ces, any forecast or outlook made or previously made should be deemed unreliable and may become irrelevant due to ongoing developmen­ts on the market at this period of time,” it said.

Rusal’s Hong Kong-listed shares were down 7.4 percent by 0759 GMT, reducing its market capitalisa­tion to $4.2 billion, according to the ThomsonReu­ters data. The company has lost about 60 percent of its value since the sanctions were announced on April 6. (RTRS)

Newspapers in English

Newspapers from Kuwait