Australian banned exports of alumina

[Kwsikh]

Australian has banned exports of alumina and aluminum ores, including bauxite, to Russia as new sanctions take effect over to the military invasion of Ukraine.

"Russia relies on Australia for nearly 20% of its alumina needs," the Australian government said. It added that the move will limit Russia's capacity to produce aluminium, which is a critical export for Russia.
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[davis196]

Aluminum is not the most "critical export" for Russia.
The Russians are exporting oil,natural gas,grain,precious metals,weapons,etc.
I'm sure that the Russians won't mind reducing their aluminum export.The biggest problem for the Russians is actually the import.How would they replace the goods,services and technologies that were imported from the west?Buying goods and technologies from China and other Asian countries is a possible option.
Another big problem for Russia would be the EU refusing to buy Russian oil and gas,but this is highly unlikely to happen right now.

[noorman0]

OP, maybe you want to add a news source as well, https://www.reuters.com/world/australia-bans-alumina-exports-russia-sources-coal-ukraine-2022-03-19/

"Russia relies on Australia for nearly 20% of its alumina needs,".

That's a pretty big number I think. The ban on trade between the two giant countries, it will definitely reduce the per capita income of both.I also don't know of an alternative destination market for australia instead. In addition, Russia has now lost its 2 main alumina export sources, Ukraine and Australia. https://oec.world/en/profile/bilateral-product/aluminium-oxide/reporter/rus?redirect=true

[martha1]

Putin demonstrated many times that sanctions will not stop him from achieving his goals on ukrain

I don't know how much of an impact will an aluminum boycott will cause but it definetly won't be enough. you should keep i mind that russia still have the oil and gaz card which is way powerfull than aluminum

[Hydrogen]

Another perspective on russia.

India buys Russian oil despite pressure for sanctions

NEW DELHI (AP) — The state-run Indian Oil Corp. bought 3 million barrels of crude oil from Russia earlier this week to secure its energy needs, resisting Western pressure to avoid such purchases, an Indian government official said Friday.

Such prices have surged in recent weeks, posing a huge burden for countries like India, which imports 85% of the oil it consumes. Its demand is projected to jump 8.2% this year to 5.15 million barrels per day as the economy recovers from the devastation caused by the pandemic.

Asked by reporters about India buying oil from Russia, the spokesman for the External Affairs Ministry, Arindam Bagchi, said many European countries import Russian oil and gas.

“India imports most of its oil requirements. We are exploring all possibilities in the global energy market. I don’t think Russia has been a major oil supplier to India,” Bagchi said.

Iraq is India's top supplier with a 27% share. Saudi Arabia is second at around 17%, followed by the United Arab Emirates with 13% and the U.S. at 9%, the Press Trust of India news agency reported.

https://news.yahoo.com/india-buys-russian-oil-despite-052218946.html

The above article claims india imports 85% of its oil from foreign sources. I think they may not be able to afford boycotts of oil, unless they could find another supplier nearby.

It appears russia's army has temporarily halted its invasion, as a cost cutting measure. If russia manages to recover its economic and financial situation, it will once again continue its invasion.

[Rruchi man]

Australian has banned exports of alumina and aluminum ores, including bauxite, to Russia as new sanctions take effect over to the military invasion of Ukraine.

If you check some of the economic uses of Alumina and Aluminium Ores, they include;
- Usage as spark-plug insulators,
- for integrated-circuit packages,
- for bone and dental implants
- laboratory ware,
- sandpaper grits and grinding wheels etc.

Not trying to undermine the usefulness and importance of Alumina to Russia, but at the moment, it seems they can carry on, and can be able to survive without Australia's alumina. The Australian government's sanctions may also have been instigated by the United States in a bid to increase the sanctions Putin and Russia have already incurred. I can't say for sure how this sanction can slow and force the hand of putin to abandon the invasion, but Australia's complaince with sanctions against Russia shows that they are no supporters of Putin's actions.

[Fortify]

Australian has banned exports of alumina and aluminum ores, including bauxite, to Russia as new sanctions take effect over to the military invasion of Ukraine.

"Russia relies on Australia for nearly 20% of its alumina needs," the Australian government said. It added that the move will limit Russia's capacity to produce aluminium, which is a critical export for Russia.

What strikes me as especially crazy in all of this destruction and sanctions is how little the stock markets have been affected by this. Many countries around the world are suffering from runaway inflation, we seem to have gotten past the worst of Covid but it's still lurking and now we have a huge war between millions of people on the edge of Europe. There seems no sign of stopping any time soon yet countries all over are still in this blissful economic bubble which is about to go pop. It's a damn shame that so much suffering has to take place with little benefit to anyone - Ukraine was at relative peace, even after getting attacked in 2014 and the world was on the path back to normal.

[stompix]

Aluminum is not the most "critical export" for Russia.
The Russians are exporting oil,natural gas,grain,precious metals,weapons,etc.

It's still 5 billion and we don't know how much of a deeper impact has on other exports that are using aluminum, it is used a lot in the car industry, packaging, and electronics so while it might not affect too much the raw aluminum exports it might affect others more. Besides, it's not only about affecting exports, but it also makes things manufactured in the country for their own use more expensive or in some cases impossible to manufacture. China screwed up big time trying to impose taxes and then banning Australian coal, let's see how this one unfolds.

The above article claims india imports 85% of its oil from foreign sources. I think they may not be able to afford boycotts of oil, unless they could find another supplier nearby.

But only 2% from Russia, a negligible amount.

What strikes me as especially crazy in all of this destruction and sanctions is how little the stock markets have been affected by this. Many countries around the world are suffering from runaway inflation, we seem to have gotten past the worst of Covid but it's still lurking and now we have a huge war between millions of people on the edge of Europe.

The stock market is flooded with money, the dumps that will happen and that normally should have happened because of lowering economic perspectives are all negated by the fact that simply there is no other investment opportunity of such scale and if some do pull out there are a ton who go all in with a fresh batch of fiat.

I'm also on the same opinion, in times of crisis the stock market and share value should reflect these issues, as you can't expect economic growth with trade restrictions and people getting killed or forced to become refugees in the millions, but with the US unleashing 4 trillion with 2 more to come, of course, nothing normal or logical will happen till the consequences of this money printing will start to fade.

[Flexystar]

Aluminum is not the most "critical export" for Russia.
The Russians are exporting oil,natural gas,grain,precious metals,weapons,etc.

It's still 5 billion and we don't know how much of a deeper impact has on other exports that are using aluminum, it is used a lot in the car industry, packaging, and electronics so while it might not affect too much the raw aluminum exports it might affect others more. Besides, it's not only about affecting exports, but it also makes things manufactured in the country for their own use more expensive or in some cases impossible to manufacture. China screwed up big time trying to impose taxes and then banning Australian coal, let's see how this one unfolds.

The above article claims india imports 85% of its oil from foreign sources. I think they may not be able to afford boycotts of oil, unless they could find another supplier nearby.

But only 2% from Russia, a negligible amount.

What strikes me as especially crazy in all of this destruction and sanctions is how little the stock markets have been affected by this. Many countries around the world are suffering from runaway inflation, we seem to have gotten past the worst of Covid but it's still lurking and now we have a huge war between millions of people on the edge of Europe.

The stock market is flooded with money, the dumps that will happen and that normally should have happened because of lowering economic perspectives are all negated by the fact that simply there is no other investment opportunity of such scale and if some do pull out there are a ton who go all in with a fresh batch of fiat.

I'm also on the same opinion, in times of crisis the stock market and share value should reflect these issues, as you can't expect economic growth with trade restrictions and people getting killed or forced to become refugees in the millions, but with the US unleashing 4 trillion with 2 more to come, of course, nothing normal or logical will happen till the consequences of this money printing will start to fade.

Nah, we can not ignore the fact that every metal is needed somewhere with something. If it is getting used somewhere then I am pretty sure it has important use in that device, instrument or may be research laboratory etc. If it was not that much important then they would have never bothered to import into country from the Australia.

With the time there is always Vendor to Client relationship build up which has contracts, future plans and budgets finalised on the same. With such sanctions many of the contracts might have already be broken, budgets collapsed and industries need to dilute the stock somewhere else now at cheap cost.

This will build up costs on the manufacturer for sure whether it is vendor or it is client, both gonna suffer from this.


Stock market and its price is byproduct of the whole trade and investment that goes around the world. So no wonder this is gonna hamper for very very long time.

[Pomogator]

These actions will not hit the Russian economy much. I think that now it is important to pay all attention to the essentials. Of course, the price of aluminum will rise, because one of the many supply options will disappear, but this is not scary. Against the background of other sanctions, this news does not seem so terrible.

[ajochems]

This was the another move of the country towards the Russian.The Russian government should change the move towards the Ukraine.In my country the cooking oil price also increased without the intimation to our country people.Oil was the essential one for the cooking,so we consume oil at high price.The limit of export to Russia will create the scarcity to them in many way.

[Gyfts]

I'm reading threads from experts on the matters related to the war in Ukraine, and apparently there are supply chain issues affecting the Russian military to the extent it is causing a stalemate. Apparently Russian troops are low on resources and exhausted and need to be replaced, which can take months. I presume aluminum exports from Australia won't help.

Aluminum is not the most "critical export" for Russia.
...
I'm sure that the Russians won't mind reducing their aluminum export

That isn't the point. Russia has the liberty to alter their trading partners during times of economic sanction. India and China would step up and do business perhaps, but those types of trading transactions take time. The procurement of raw materials doesn't happen on a whim. Aluminum might not be a critical export, I don't have the technical knowledge to say either way, but it isn't good for war business.