🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Japan's Kobe Steel says mostly suspended trade with Rusal after U.S. sanctions

Published 27/04/2018, 11:45
© Reuters. FILE PHOTO: The Kobe Steel Kobelco headquarters building is seen in Kobe
5406
-
RUAL
-

TOKYO (Reuters) - Japan's Kobe Steel Ltd (T:5406), which also makes aluminium products, has mostly suspended trade with United Company Rusal Plc (HK:0486) after the United States imposed sanctions on the Russian aluminium giant, its executive said on Friday.

"We have no intention to actively trade with any companies on the U.S. sanctions list," Kobe Steel Managing Executive Officer Kazuaki Kawahara told an earnings briefing when asked about the company's policy.

The company is searching for alternative sources for refined metals, he said.

The United States imposed sanctions this month on seven Russian oligarchs and 12 firms they own or control, including Hong Kong-listed Rusal, saying they were profiting from a Russian state engaged in "malign activities" around the world.

But the U.S. Treasury on Monday gave U.S customers of Rusal until Oct. 23 instead of June 5 to wind down business with the company. Treasury said it would not impose secondary sanctions on non-U.S. entities engaged with Rusal or its subsidiaries.

Another Kobe Steel executive said the U.S. extension may give it more breathing room on securing supplies.

"We are struggling to find a way on how to deal with the issue and to secure alternative supplies, as Rusal is the world's second-biggest aluminium producer and has a big impact," Senior Managing Executive Officer Yoshihiko Katsukawa said.

© Reuters. FILE PHOTO: The Kobe Steel Kobelco headquarters building is seen in Kobe

Kobe Steel is one of the Japan's biggest companies making aluminium products that are used in automobiles, trains and electronics. It sold 363,000 tonnes of aluminium rolled products in the year ended March 31, 2018.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.