How the Kremlin earns money in Europe for the war in Ukraine, 13 August 2024

Despite the imposition of 14 sanctions packages against Russia, the restrictions have not yet affected its aluminium production. As a result, the Russian aluminium giant Rusal has not only not been subject to any sanctions, but also continues to own subsidiaries in the EU.

After oil and gas, metal accounts for a significant portion of Russia's export earnings. According to the Reuters news agency, last year, exports of Russian metals and metal products brought in about $60 billion, although this year it was down 15 percent compared to 2022. However, the European Union is in no hurry to impose sanctions on Russian metals. Unlike the US and the UK, Brussels has not yet imposed effective sanctions on Russian aluminium, nickel and copper...

In addition to sanctions against Russian metals, Europe should continue to sanction and strengthen sanctions against Russian companies and their owners, i.e. Russian oligarchs. The example of the Russian aluminium giant Rusal is a good one: not only is the company not under sanctions, but it still has subsidiaries in several EU countries.

The revenues from Rusal are primarily received by Russian oligarchs Oleg Deripaska, who is under EU sanctions, and Viktor Vekselberg. The companies of these oligarchs, including Rusal, are actively working for the Russian defence industry.  They assist in producing of everything from infantry weapons, tanks and armoured vehicles to aircraft and precision missile systems. There is also information that Rusal recruits so-called volunteers to fight against Ukraine...

In particular, the Kubal metallurgical enterprise in Sundsvall, a subsidiary of the Russian Rusal, is still successfully operating in Sweden. Due to the absence of EU sanctions, the company continues to operate in Sweden and generate profits for the Russian Federation and Russian oligarchs...

Today, sanctions against Russian metals are perhaps the only way to weaken the Russian economy and achieve a turnaround in the war that threatens the security of the entire European continent in the near future.