Arconic To Sell Off Russian Aluminium Operations

Arconic To Sell Off Russian Aluminium Operations

Pittsburgh value-added aluminium firm Arconic Corporation said last week it is working towards divesting itself of its interests in its Russian portfolio.

According to the firm, the decision is the result of a “thoughtful review” of the avenues available to it in light of the limits put to it by the Russian government and its Federal Anti-Monopoly Service. Arconic has been in the middle of a legal fight with the agency for the past several months.

As a result of the review, Arconic’s board of directors has approved the sale of its operations in Samara, which would ultimately yield a charge of up to US$500 million on its books afterwards.

Tim Myers, Chief Executive Officer of Arconic, said in a press release that the late unpleasantness in Ukraine made the move all but inevitable.

“Sadly, the conflict in Ukraine has made our operation in Russia untenable. We continue to prioritize the safety and well-being of our more than 3,000 world class employees and their families. We appreciate all of their hard work through a very challenging time and we will endeavor to provide them with a successful transition moving forward.”

Arconic is the latest of several aluminium firms who have made moves to distance themselves from operations and companies based in Russia. Although Russian aluminium firms have yet to be sanctioned by the international community, Russian aluminium magnate Oleg Deripaska found himself under sanction not long after Russia’s invasion of Ukraine due to his ties with Russian president Vladimir Putin.