Economy, Business And Markets
0

IRALCO Prospects Brighten After US Sanctions on Russian Producer Rusal

IRALCO’s shares at TSE grew 26.9% from April 16 to May 1.IRALCO’s shares at TSE grew 26.9% from April 16 to May 1.

In market disruptions, one’s loss is usually another’s gain. This was particularly true for the aluminum market in April.
Carnage was unleashed on April 6 by the imposition of United States’ sanctions on Oleg Deripaska and his Rusal aluminum empire. Other producers, including even small-scale ones in Iran, were subsequently the target of investors’ attention.
At a stroke, the sanctions effectively cut off some 3 million tons of aluminum, or roughly 6% of global supply from the markets.
US sanctions targeted Deripaska under a law that ordered the administration of US President Donald Trump to punish Russia for its alleged meddling in the 2016 election. 
Deripaska was identified in a January Treasury report as a Russian oligarch close to the country’s president, Vladimir Putin, Bloomberg reported.
Rusal Plc’s shares consequently plunged as much as 41.8% on April 9, as investors bailed on the stock.

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com