Production of aluminum at RUSAL smelter factory, Russia © Ilya Naymushin / Reuters
Reuters: U.S. extends deadline for Rusal sanctions, aluminum prices dive
WASHINGTON/MOSCOW (Reuters) - The U.S. government on Monday gave American customers of Russia’s biggest aluminum producer more time to comply with sanctions, sending aluminum prices into a tailspin but lifting shares of the company, United Company Rusal Plc.
Aluminum prices on the London Metal Exchange tumbled more than 8 percent after the U.S. Treasury Department announcement, which gives Rusal longer to sell off the large quantities of aluminum it had been stockpiling in the wake of sanctions as customers and traders avoided its product.
Shares in Rusal, one of the world’s largest aluminum companies, rose 13 percent on the Moscow Exchange after the announcement. Earlier, Rusal had ended Hong Kong trading down 8.4 percent. Shares of its U.S. rival Alcoa Corp slid 13 percent in morning trading.
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Update: US Treasury extends deadline for ending deals with Rusal until October 23 (TASS)
WNU Editor: Russia's aluminum giant Rusal is a major player in Russia's economy, and sanctions on this company are causing deep concerns in the Kremlin. And while many in Russia are relieved in this shift in U.S. policy on Russian sanctions, there is a big US Treasury condition to this extension .... US hints at relieving pressure on Russia's RUSAL if owner sells firm (RT)
3 comments:
Having the US dollar as world reserve currency been a huge benefit for America. Unfortunately, at best, it is a left over relic from the post WW2 era and was not/ is not going to last for an indefinite amount of time. Things such as this reckless use of this asset and massive debt spending only hasten the end of the US dollar in this role and make the much needed outcome of a "soft landing" when this happens all the more problematic.
It is an encouraging sign that some are stepping back from the abyss on this, however, placing such conditions is not going to go over well. Others will be taking note and blowback against us will be fierce at some point probably in the not to distant future. At this point, it seems that an attempt is being made to "thread the needle" between the crazies who seem to want war with Russia at any costs and those who have maintained some degree of sanity. I am unable to envision a scenario where trying to placate the insane is going to end well.
Your command of the English language, Dimitri (name means earth lover and is the name too of a major character in The Brothers K., Dost. novel) is nice, and it is in keeping of course that you continue to post as ordered for your position
Anon,
The rationale given for the expansion of sanctions against Russia is dubious at best and the evidence presented to actually support such actions is even more questionable. At some point, the "shoe may be on the other foot" so to speak with foreign powers attempting to force American business owners to sell their businesses. There is an inevitable law of "sewing and reaping." While they may be a time, place, and a need to ratchet up such tensions, the proper evidence has not been presented to support such an action nor are the arguments made to justify the position rational.
This leads into your line of attack/defense for a weak position. Knowing the case for your position is weak you must try and attack the credibility of those who disagree with you by accusing them of being a foreign agent or a troll. Now, if you have something constructive to add to this, please do so otherwise don't waste my time!!
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