RusAl has warned that state support will be needed to boost domestic aluminum output, as foreign producers are on course to increase their share of Russia's market from 39 to 47 percent by 2017, Vedomosti reported Monday.
Sergei Belsky, RusAl's sales director for Russia and the CIS, said in a conference report that Russian production was being held back by high borrowing costs and the impossibility of hedging deals.
The company, the world's largest aluminum producer, wants to see changes in the law to regulate aluminum use and to "stimulate foreign producers to open factories inside Russia." However, the company stressed that it is not asking for tariffs or preferential treatment.
Andrei Shenk, of InvestCafe, blamed inadequate technology for Russia's failure to satisfy its aluminum needs. A total of 412,000 tons of aluminum was imported in 2012, and RusAl estimates that 600,000 tons will arrive in 2017.
RusAl, which reported a loss of $337 million last year, is working with the Industry and Trade Ministry to tackle the problem, said a source in the company.
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
