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Rusal reports higher first quarter net profit

Windalco's parent company - Russian aluminium giant Rusal - is reporting higher first-quarter net profit amid stronger aluminium prices, but warned that sanctions imposed by the US in April could harm its business. 
 
The US last month announced sanctions on Russian billionaire Oleg Deripaska and several companies in which he is a large shareholder in response to what it called Russia's malign activities. 
 
Rusal's recurring net profit for the first quarter of  2018 rose 22.4 per cent to US$531 million  from US$434 million  the same time last year.
 
It said its current situation was largely affected by the sanctions imposed by the US on April 6, and repeated its assessment that it is highly likely that the impact may be materially adverse for its business. 
 
Meanwhile, Rusal has reportedly asked the London Metal Exchange to temporarily lift its suspension on its aluminum after an extension of  the deadline for companies to wind down contracts with the Russian firm under U.S. sanctions.
 
The London Metal Exchange suspended Rusal's aluminum from April 17 after the U.S. Treasury Department imposed the sanctions.
 
The Treasury has extended its deadline for U.S. consumers to wind down business with Rusal to October 23 from June 5 and said it would consider lifting sanctions if  Rusal's major shareholder, Russian tycoon Oleg Deripaska, ceded control of  the company. 
 
The extension detailed effectively means aluminum produced and sold by Rusal until October 23 is free of  U.S. sanctions, so long as the deal to buy was signed before they were imposed on April 6.
                                                                                                                               


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