Sanctions prohibiting Aughinish Alumina from continuing to export material to Russia are not included in a draft of the European Commission’s next package of measures targeting the Russian wartime economy.
The EU’s member states will be asked to weigh in on what will be the union’s 22nd round of economic sanctions, which are intended to make it harder for Moscow to wage its war in Ukraine.
Confidential discussions will take place over the coming weeks between commission officials and senior diplomats from all 27 EU states to sound out support for the draft sanctions package, and make changes, before governments start negotiating between themselves.
The Estonian foreign ministry has said it plans to push for Brussels officials to sanction alumina, a move that would prohibit Aughinish from shipping the product to Russia.
The Co Limerick plant is owned by Russian metals giant Rusal and ships vast quantities of alumina to smelters in Russia, where the raw material is turned into aluminium, a key ingredient in the industrial supply chain.
The plant, which employs several hundred people in the Foynes area, previously warned it could be forced to shut if its exports to Russia were barred by EU-level sanctions.
A draft of the commission’s 22nd package of sanctions does not propose measures prohibiting alumina exports, according to one senior source briefed on the closely guarded details.
However, several sources in the commission’s Brussels headquarters cautioned that changes could often be made following confidential talks, known as “confessionals”, with national diplomats in Brussels.
It is understood the commission had internally debated proposing a quota to limit Aughinish’s exports to Russia, rather than a full export ban. The restriction would have reduced sales to Russia gradually over time, to give the Irish plant a chance to find other markets for its material.
The commission, the EU’s executive body, has privately not ruled out sanctions on alumina, meaning it is possible the proposal features in later packages.
Estonia will ask the commission to target alumina in the coming package.
“We can confirm that yes, Estonia has made such a proposal at the EU level,” a spokesman for the Estonian ministry of foreign affairs told The Irish Times.
Sources said Estonia did not expect the Irish Government to fight the proposal. However, other countries with alumina or aluminium industries, such as France, may have objections. Poland would probably be minded to back alumina sanctions, another source said.
Aughinish Alumina’s exports of alumina to Russia have been in the spotlight after reporting by The Irish Times tracing the shipments to smelters in Russia, where it is made into aluminium that is sold to ASK, a Moscow trading company known to supply the alloy to Russian arms and missile manufacturers.
The Limerick plant’s exports to Russia have significantly increased since the full-scale invasion of Ukraine and account for about half of Aughinish’s business, prompting concerns that material supplied by Ireland was being used to make missiles and weapons for Moscow’s war.
The EU has levied round after round of economic sanctions on Russia since its invasion of Ukraine nearly five years ago. In effect the measures cut off Russian companies, oligarchs and industries from the western economy, by making it an offence for EU entities to sell listed products to Russia, or buy products. Alumina has not been listed as a sanctioned product.
The Government has repeatedly made the case it has not opposed any EU sanctions to date. Ministers point out that proposing sanctions on Aughinish’s shipments to Russia is a call for Brussels to make.
A proposal to levy sanctions on Aughinish Alumina’s Russian business ties would put Dublin in a very awkward position, forcing the Government to choose between possible backlash from European allies for opposing EU-level sanctions, or local backlash in Limerick if jobs were put at risk.
Any new sanctions must be unanimously agreed by all 27 EU states.
The Department of Foreign Affairs did not respond to requests for comment.