Brussels targets Russian aluminium imports with SWIFT sanctions, tariffs ahead

The European Union is set to introduce a phased ban on Russian aluminium imports, alongside sanctions targeting 15 Russian banks' disconnection from the SWIFT system and over 70 vessels tied to the Russian oil trade.

The new measures would allow European buyers to import Russian aluminium under a quota system for a one-year period before a full ban is enforced, Caliber.Az reports via foreign media.

However, the proposals, which still require unanimous approval from all EU member states, may undergo changes before being formally presented.

“There have been calls for the EU to take action on Russian aluminium since the invasion began,” sources noted. 

While Russia’s exports to the bloc have steadily decreased as manufacturers seek alternative suppliers, there has been resistance from some buyers and member states, citing the difficulty in replacing certain key products.

As the EU faces pressure to impose tougher measures on Russia’s metals sector, the United States and the United Kingdom have already enacted bans on trading Russian metals on the London Metal Exchange. These actions have had a significant impact on global trade flows, causing volatile price fluctuations.

Note that, in the first 11 months of 2024, the EU imported approximately 320,000 tonnes of unwrought aluminium from Russia, accounting for 6% of total aluminium imports. At the same time, Russia’s shipments to China have risen substantially, the data showed.

However, not all member states are on board with the proposals. Hungary has shown increasing resistance to further penalties on Moscow, having recently blocked the routine six-month renewal of EU sanctions on Russia.

One source suggested that while the phased aluminium ban remains a central component of the sanctions package, the EU may explore other avenues to address the situation. “The EU had previously considered including LNG in the sanctions package, but this is now expected to be addressed through a separate roadmap aimed at phasing out the commodity rather than as a direct sanction,” they said.

In addition to the sanctions on metals, the EU also plans to impose tariffs on the remaining agricultural products coming from Russia and Belarus, as well as nitrogen-based fertilizers that are not already subject to duties.

By Aghakazim Guliyev