Glencore will not renew $16 bln aluminium deal with Russia’s Rusal

  • Deal expires next year
  • Glencore shares up 1.4%

March 16 (Reuters) – Glencore (GLEN.L) will not renew a $16 billion deal to buy aluminium from Russia’s largest producer United Co Rusal International when it expires next year, Bloomberg News reported on Thursday, quoting Chief Executive Officer Gary Nagle.

The group has continued to honour existing contracts but has pledged not to enter into any new business with Russia in the wake of its invasion of Ukraine, the report said.

A spokesperson from Glencore confirmed the content of the report.

Bloomberg had reported last month that Trafigura Group, one of Glencore’s biggest trading rivals, is in talks about securing its own supply of metal from Rusal, citing people familiar with the matter.

Trafigura declined to comment on the news and its talks with Rusal while the Russia company did not respond to Reuters’ requests for comment.

Glencore’s shares were up 1.4% at 418 pence as of 1350 GMT.

Reporting by Muhammed Husain in Bengaluru; editing by Rashmi Aich and Jason Neely

Our Standards: The Thomson Reuters Trust Principles.

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