The Armenian rolling mill Armenal, controlled by the Russian aluminum giant RusAl, began to reduce capacity and could completely stop production, Reuters reports citing a source at the plant and a source close to Rusal. According to them, "Armenal" reduces capacity due to a decrease in demand due to US sanctions imposed on businessman Oleg Deripaska.
As the agency's interlocutor at the plant said, the production units of the enterprise were transferred to idle mode with payment of two-thirds of the average salary to employees.
"Rusal" and other Russian companies fell under US sanctions on April 6, 2018. Restrictive measures presupposed the freezing of assets and the ban on American citizens for any business with companies included in the list. Last week, Bloomberg reported that "Rusal" is preparing to cut production due to US sanctions.
The US Treasury Department on September 14 allowed US companies to make new transactions with entities controlled by businessman Oleg Deripaska, in particular with Rusal, if such agreements had already been concluded between counterparties. This concerns the period until October 23, 2018, when the sanctions restrictions against these companies must enter into force.