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Sanctions Against the Russian Aluminum Industry

Pavel Pavlov – Senior Research fellow of Department for System Analysis of Industrial Markets, Institute for Sectoral Markets and Infrastructure, Russian Presidential Academy of National Economy and Public Administration. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The article analyzes the economic constraints for the use of sanctions by the US against the Russian aluminum industry. A trial attempt to introduce full-scale sanctions against UC Rusal exacerbated the deficit of aluminum supply in the world market and caused a significant increase in world metal prices. Among the key economic limitations for the application of the sanctions regime in relation to the Russian aluminum industry in the near future is the shortage of metal supply in the world market, as well as the dependence of the US real sector on the import of primary aluminum. These circumstances should be taken into account when discussing measures currently being developed to increase domestic demand for aluminum, ensuring that the balance of sectoral and Russian public benefits and costs is taken into account.

Key words: sanctions, aluminum industry, export structure, world aluminum prices, government support measures.