Sanctions placed on Russian oligarch who part owns Aughinish Alumina plant in Limerick

RUSSIAN oligarch Oleg Deripaska, who part owns Aughinish Alumina, is one of a number of Russian businessmen now facing sanctions by the British government because of the Russian invasion of Ukraine.

Mr Deripaska, who is reported to be worth €2.4 billion, is being slapped with a full asset freeze and travel ban as part of the British government’s crackdown on Russian oligarchs. 

Following the announcement by the UK government, Bloomberg reported that Rio Tinto plans to stop supplying bauxite and sourcing alumina from Rusal’s Aughinish refinery as the miner moves to sever ties with Russian companies.

However, it is unclear, as yet, what effect, today's developments will have on production and jobs at Aughinish but it is certain to raise concerns about job security for the 480 permanent staff and hundreds of other contract and downstream workers.

It could also increase pressure on the Irish government to take some action. 

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Earlier this month, the Limerick Leader reported that talks had taken place between Aughinish management and Tánaiste and Enterprise Minister Leo Varadker about the implications of the EU’s ban on exports from the EU to Russia. 

Aughinish is the EU’s largest producer of alumina powder, the main constituent of aluminium. 

In 2018, Aughinish also faced uncertainty when sanctions were imposed by the US Treasury in retaliation for alleged Russian interference in the US elections and targeting  Russian oligarchs including Oleg Deripaska.

The the Irish government mounted a diplomatic offensive with the Taoiseach, Tánaiste and other ministers, including Minister of State, Patrick O’Donovan, visiting Washington and stressing the “unintended consequences” of the sanctions on Aughinish jobs. 

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As a result of  number of reprieves were granted, during  which time, Mr Deripaska took certain steps which allowed the sanctions to be lifted. He reduced his shareholding in  the EN+ Group, which owns 48% of RusAl which owns Aughinish.

He also reduced his shareholding from 70%to 35%  also reduced his control of seats on the boards from 75% to 33%.

At the time, the US Treasury Secretary stressed the sanctions were against Mr Deripaska and not against the companies he owned. 

How Mr Deripaska deals with the new, British sanctions remains to be seen.