United Co. Rusal PLC resumed aluminum shipments to some customers in the week of May 14 following an extension of the deadline for companies to wind down contracts with the Russian producer under U.S. sanctions, Reuters reported May 24, citing sources.
The U.S. government moved its winding down deadline to Oct. 23 from June 5 and previously said it would consider lifting the sanctions if major Rusal shareholder Oleg Deripaska ceded control of the company.
According to the report's sources, the deliveries were initially trickling out, but quantities have ramped up substantially. The sources declined to disclose specific figures.
In April, the Russian aluminum producer was stockpiling unsold aluminum at a plant in Siberia as part of the U.S.-imposed sanctions that prevent it from selling the commodity to customers.
Previously, Hindalco Industries Ltd. unit Novelis Corp. halted aluminum purchases to comply with the sanctions. A separate Reuters report April 19 said Kazakhstan is exploring new markets for alumina exports amid concern over the sanctions that may hit businesses and jobs.
Mining giants Rio Tinto, Norsk Hydro ASA and Glencore PLC also declared force majeure on contracts and some aluminum supply with Rusal in the wake of the sanctions.
Meanwhile, a separate Reuters report, citing the TASS news agency, said VTB Bank CEO Andrey Kostin said the bank is prepared to give Rusal more time to settle its loans.
