EU fears sanctioning Irish Rusal plant would harm its own industry

The European Union is hesitant to impose sanctions on the Irish plant Aughinish Alumina, owned by Russian company Rusal, despite suspicions that its products are used in the manufacture of Russian weapons.

This was reported by the Financial Times.

Irish authorities conducted an inspection of the plant’s operations due to suspicions that it was supplying raw materials to Russia’s military-industrial complex. However, the investigation yielded no clear-cut results and did not confirm any link between the plant and Russian military orders. According to the inspection’s findings, in the first five months of the current year the plant sent 52% of its output to Russia and 34% to France, Sweden, and the Netherlands.

Despite the fact that a significant share of Aughinish Alumina’s output goes to Russia, Brussels is refraining from imposing restrictions. The reason is concern that sanctions would cause supply disruptions at EU aluminum plants, which have been described as “critically important to the European automotive and defense industries.”

“If we impose sanctions on the company, we cut ourselves off,” one European official told the outlet.

The Aughinish Alumina plant produces alumina and is part of the Rusal conglomerate. Rusal itself was founded by Russian oligarch Oleg Deripaska, who is subject to sanctions imposed by Ukraine, the United States, the European Union, the United Kingdom, Canada, and Australia.

Earlier, media reported that the 21st sanctions package against Russia adopted by Brussels may be the last in its current format, as the EU is considering introducing restrictions through individual decisions or thematic packages.