EU unable to prohibit Russian aluminum
(MENAFN) The European Union (EU) is expected to refrain from imposing a comprehensive ban on the import of aluminum from Russia in its upcoming sanctions package, marking two years since Moscow's military operation in Ukraine, according to Politico's report on Monday, citing diplomatic sources. Despite strong support from local aluminum producers in Lithuania, Latvia, Estonia, and Poland, the European Union is likely to avoid such a drastic step. The proposal could face resistance from industrial nations like Italy, fearing the potential escalation of prices for this crucial industrial commodity.
The pressure to introduce a ban stems from concerns related to Russia's aluminum industry, which still constitutes 9 percent of European Union imports and 5 percent of total consumption, as noted by the European Aluminum Association. In 2022, these imports amounted to EUR2.3 billion. However, the opposition to a ban extends beyond economic considerations, with industrial consumers within the European Union labeling it as a potential "economic tactical nuclear bomb."
Lithuania, Latvia, Estonia, and Poland are pushing for stringent measures against Russian aluminum, advocating for a complete ban due to geopolitical concerns. However, industrial nations like Italy, supported by others, are wary of the economic consequences such a ban could have on the prices and availability of aluminum, a critical component for various industries.
The Federation of Aluminum Consumers in Europe, representing manufacturing industries in Italy, Germany, and other countries, emphasized in December that "sanctions should not be weaponized." This sentiment reflects the broader debate within the European Union on how to balance economic interests with geopolitical considerations.
Recent reports suggest that the European Commission is planning to avoid adding new import bans in its next sanctions package on Russia, aiming to minimize debate among member states and expedite the approval process. The proposed punitive measures, expected to be agreed upon by February 24, will reportedly target 200 entities and individuals but will exclude any prominent names. The delicate balance between economic interests, geopolitical considerations, and the need for swift decision-making underscores the challenges faced by the European Union as it navigates complex sanctions discussions.
MENAFN08022024000045015687ID1107827771
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.