Rusal divesting itself of polluting assets

RUSSIA / FSU POLITICS - In Brief 25 May 2021 by Alex Teddy
The aluminium company is starting a major restructure. The aim is to make the most of the green energy revolution. Rusal wants to ingratiate itself with environmentally friendly investors.On May 20 Rusal said it will break itself into two companies. One will produce green aluminium and the other will run the most majorly carbon emitting plants. Rusal shall keep its eco-friendly assets and call itself Al+. The new company will have its own stock market listing.The chairman of EN+ (which owns Rusal) is Lord Barker - the erstwhile British energy minister.Al+ will have a small carbon footprint. Rusal is the 3rd biggest aluminium producer in the world. It is the biggest outside China. Rusal makes 6% of the world's aluminium. Oleg Deripaska owned Rusal until 2018 but now oens some of the shares.Aluminium requires a lot of energy to make. Rusal is already very efficient in its energy usage. Rusal emits 2.2 tons of CO2 per ton of aluminium made compared to 12.3 tons as the world average.Al+ will get better financing terms. It will attract funds at a better rate.The combined valye of Rusal and Al+ will be more than Rusal's current value. Eco-friendly firms attract high investor valuations.Rusal was worried about carbon border taxes by the EU and US. Russian business is rightly anxious about this.

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