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Rusal invests in US aluminium mill after sanctions lifted

AFP  |  Moscow 

Russian on Monday announced plans for its first investment in the since sanctions against the company were lifted.

The US sanctions, which targeted oligarchs close to Russian Vladimir Putin, were imposed on last year and only removed in January after owner divested and resigned his seat on the board.

on Monday said it would with US manufacturer "to establish a joint project in Ashland, Kentucky, USA to produce flat rolled for the US automotive industry".

The factory "will be the widest US-based cold rolling mill" and "will aid towards rebalancing the anticipated deficit of the auto body sheet in the US market," Rusal said in a statement.

Rusal, the world's largest outside of China, will hold a 40 per cent share in the project and be the exclusive supplier to the factory.

It will therefore be subject to the 10 per cent tariff on aluminium imports announced by US last year.

Rusal will initially invest USD 200 million in the USD 1.7 billion project, executives of both companies told S&P Global Platts.

The company took a hit last year when Russian billionaire Deripaska was included the US Treasury's sanctions which sought to punish Putin's inner circle for Moscow's alleged interference in the politics of Western democracies.

The penalties were lifted against Rusal and two of Deripaska's other companies when he reduced his stakes in them, but sanctions remain on him personally, preventing others from doing with him.

Deripaska was also mentioned frequently in the investigation by US into Russian meddling in America's 2016 election, but he has not been charged.

He had been formerly involved in with Paul Manafort, Trump's ex-campaign who has been sentenced to seven and a half years in prison for financial and other crimes.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 15 2019. 15:31 IST