Rusal Faces Financial Setbacks Amid Rising Costs and Sanctions Pressure

Russian aluminium giant Rusal reported a net loss for 2025, amid rising costs and sanctions-related market pressures.

The Hong Kong-listed company, the largest aluminium producer outside of China, revealed losses amounting to $455 million, a stark contrast to its $803 million profit in 2024. Rusal's performance has been notably affected by Western sanctions imposed over the Ukraine conflict. Although Rusal itself has not been directly sanctioned, the overall market climate is impacted, deterring some Western buyers from new contracts involving Russian aluminium.

In an attempt to mitigate declining demand in Western markets, Rusal has been shifting its focus towards Asia since 2022. This shift follows the European Union's imposing of a ban on Russian aluminium, albeit with a 275,000-ton import quota during a transitional period. Despite a 22.6% revenue increase to $14.81 billion in 2025, Rusal's total cost of sales surged by 32.3%, driven primarily by a 16.4% increase in aluminium sales volumes and a rise in alumina costs. While production saw a slight decline of 2%, higher sales volumes and improved pricing—up 5.2%—contributed positively.