Collateral damage: Aughinish Alumina and EU sanctions

Shannon-based Aughinish Alumina faces scrutiny following a report alleging a significant portion of its alumina exports are destined for Russia, with concerns that the material could be used in the manufacturing of weapons targeting Ukraine.

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concern

The investigative report, published by a consortium of European media outlets including the Irish Times, claimed that raw material from Aughinish was making its way into aluminum-based weapons. This assertion prompted "concern" from Irish Taoiseach Micheál Martin, who announced a review by two government departments. Belgian foreign minister Maxime Prévot described the findings as "extremely disturbing."

David O’Sullivan, the EU’s sanctions envoy, stated it was "very worrying" if alumina from the Limerick plant was indirectly fueling the Russian war effort. However, both the Irish government and Aughinish Alumina emphasized that alumina exports to Russia are not currently prohibited under EU sanctions. The company asserted its "strict compliance with all applicable European Union laws, including sanctions, export control measures and trade regulations."

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extremely disturbing

Despite these assurances, the controversy intensified as Ireland prepared to hold the EU presidency. European Parliament Vice President Pina Picierno urged the European Commission to include alumina exports in the next round of sanctions, deeming it "unacceptable" for a Russian-owned company to supply Russia's military industry. Separately, 39 Members of the European Parliament called for an end to these exports. The Irish government cautioned that imposing sanctions could risk over 700 direct jobs and 1,000 support positions, with the Taoiseach warning that such measures would be "devastating" and disproportionately harm Europe and Ireland compared to Russia.

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very worrying

Aughinish Alumina was acquired in 2007 by United Company Rusal, a Russian conglomerate founded by billionaire Oleg Deripaska, a close associate of Russian President Vladimir Putin and a target of Western sanctions. The OCCRP report, citing customs data and leaked documents, traced the supply chain from bauxite mines to the Limerick plant and subsequent alumina shipments.

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in strict compliance with all applicable European Union laws, including sanctions, export control measures and trade regulations