Russia prepares first US investment since sanctions were lifted

Rusal, the Russian aluminum producer formerly controlled by oligarch Oleg Deripaska, has announced its first investment in the United States since the lifting of sanctions earlier this year.

It plans to spend $ 200 million for a 40% stake in a Kentucky plant, which will be the largest new aluminum plant built in the United States in nearly four decades.

The agreement with Braidy Industries, a private company, marks the return of Rusal to the United States and is part of a broader strategy to increase sales of sustainable products with higher margins.

It is also the most important project to obtain financial support since President Donald Trump announced his intention to impose a 10% tariff on aluminum imports. Mr. Trump says he's trying to protect American workers and companies from unfair foreign competition.

Under the deal, Rusal will supply the new plant with 2 million tonnes of low-carbon aluminum worth $ 500 million a year for the next decade. The aluminum slabs will then be rolled into thin sheets and sold to car markers and the beverage industry.

"Of all the major producers in the world, only Rusal, the largest outside of China, has the ability to provide such a large plant with the high quality, low carbon aluminum it needs." said Lord Barker, executive chairman of the En + group. , holding company of Rusal, listed in London.

Rusal's goal is to market a carbon-free version of carbon by 2021 to meet growing consumer demand for raw materials and products from responsible sources.

Rusal uses the hydroelectric power of the Siberian rivers to power most of its foundries. There is currently no factory in the United States.

During the construction phase, the Braidy Atlas plant will employ 1,500 people and create 650 permanent jobs when it is operational next year. Braidy is planning an IPO later this year.

Investment in the plant comes just months after the release of US sanctions by En + and Rusal through a complex agreement reached between Mr. Deripaska and En +.

Mr. Deripaska has agreed to reduce his stake in In + from 65% to 45% and controls only 35% of the voting rights.

En +'s board of directors was also revised, which resulted in further relaxation of its hold.

It is not clear whether agreement with the US Treasury Department to lift the sanctions included commitments to invest in projects such as Braidy Atlas.