KIEV Oct 18 Ukraine imposed sanctions on
Russian aluminium giant Rusal on Tuesday, accusing the
company of actions that threaten Ukrainian national security and
assets, according to a presidential decree.
Kiev has already placed economic and other restrictions on
more than 300 Russian citizens and companies following Russia's
annexation of its Crimea peninsula in March 2014 and the ensuing
pro-Russian separatist uprising in the east.
Rusal, the world's second largest aluminium producer, is the
owner of Ukraine's biggest alumina plant Mykolayiv and also
controls a part of ZALK, Ukraine's only aluminium producer.
Alumina is used in producing aluminium.
According to the decree, Ukrainian authorities will have
the right to block Rusal's assets and restrict its trade
operations inside the country. The decree did not elaborate on
how Rusal's activities threatened Ukraine.
Sanctions also include a ban on withdrawing capital,
exclusion from bidding for state contracts and a ban on share
Rusal said the sanctions were unwarranted and that it would
seek compensation in court.
"RUSAL and its member companies have no influence on the
political processes taking place in Ukraine, do not create a
threat to national security, and do not hinder the economic
development of the country," the company said in a statement.
"Inclusion of the company subsidiaries in the sanctions list
is detrimental to our shareholders," it added.
Rusal's group of assets produced 7.4 million tonnes of
alumina globally in 2015, of which about 1.5 mln tonnes were
produced by Mykolayiv.
(Reporting by Pavel Polityuk; additional reporting by Polina
Devitt in MOSCOW; editing by Matthias Williams/Keith Weir)