Ukraine moves against Rusal parent group of Aughinish plant

More than 300 assets linked to Russian billionaire Oleg Deripaska and Rusal have been transferred to the state, Ukraine’s Justice Ministry said

The Aughinish Alumina refinery on the Shannon Estuary near Foynes, Co Limerick, is operated by Rusal.

Ukraine is confiscating a key alumina plant linked to Rusal International and other assets it says are owned by Russian billionaire Oleg Deripaska, under sanctions the government imposed after Russia’s invasion last year. 

More than 300 assets linked to Mr Deripaska and Rusal have been transferred to the state, Ukraine’s Justice Ministry said in a website statement, citing a decision by the top anti-corruption court on February 16. Rusal is controlled by Russia-registered En+ Group, in which Mr Deripaska still holds a stake of about 45%. 

Rusal also operates the huge Aughinish facility on the Shannon Estuary in Co  Limerick, which it says is Europe’s largest alumina refinery. The Ukrainian move may put the spotlight back on the plant even though it has not faced international sanctions arising from the Ukraine war.             

The Mykolayiv alumina refinery has been offline since early March 2022, after Russia bombed the southern city. The ministry accused Mr Deripaska of being close to Russian president Vladimir Putin and having “a significant share” of Rusal and parent company En+ Group. 

It also said Rusal controls some companies in Russia that produce armoured vehicles used by that country’s army to fight in Ukraine. Mr Deripaska does not hold controlling stakes in Rusal or En+ after being sanctioned by the US. The aluminium producer did not immediately respond for comment. 

“The Justice Ministry of Ukraine won’t stop there, but will continue to implement the sanction by confiscating assets of sanctioned people,” deputy justice minister Iryna Mudra said in the statement. 

“We are doing everything so that the assets of people who support Russia’s aggression will benefit Ukraine’s economy and armed forces as soon as possible,” she said.  

Rusal, co-founded by Mr Deripaska, acquired the refinery in the early 2000s. 

It relied on the facility — which could churn out about 1.76m tons of alumina a year — for more than 20% of the raw material needed for its aluminium factories in Russia. After the site shut this year, Rusal had to look for new sources of supply, including in China and Kazakhstan.

The permanent loss of the Mykolayiv refinery will be a blow to Russia, which has had close ties to the plant ever since it was built more than 40 years ago to address the Soviet Union’s alumina shortfall.

The Ukrainian parliament this year approved legislation to nationalise the assets of Russian citizens, as well as companies in which Russians are beneficiaries. 

• Bloomberg. Additional reporting Irish Examiner