New Delhi, Sept 15 (KNN) Russia is looking towards India to import aluminium feedstock alumina to reduce its dependence on China.

Ever since Russia invaded Ukraine in 2022 it has lost two crucial sources of alumina, used to make aluminium metal.

As a refinery in Ukraine suspended production and Australia banned supplies to Russia.

Russia has stepped up imports of the aluminium feedstock alumina from India in recent months to supply its vast Siberian plants.

This move will diversify the sanctions-hit country's supply, helps reduce dependence on China and cuts costs. 

While Russia and China are on friendly terms, aluminium production in China is rising, leaving less price flexibility for Russia to buy alumina. 

Russia's Rusal, the world's largest aluminium producer outside China, needs to fill the gap left by suspended supplies to sustain domestic production while aiming to protect its margins against a weaker aluminium price backdrop.

The company's own alumina assets in Russia, Ireland, Jamaica and Guinea supply 70 per cent of its needs, or 5.5 million metric tons. 

Russia became the largest buyer of alumina from China last year. Rusal's cost of purchasing alumina jumped by USD 1.1 billion to USD 1.8 billion in 2022 as it had to pay more for the raw material and for delivery.

Rusal has since diversified by securing alumina supplies from India and Kazakhstan.  (KNN Bureau)