OSLO (Reuters) - Aluminum maker Norsk Hydro may declare force majeure on contracts it has with Russia’s United Company Rusal due to U.S. sanctions, the Norwegian company said on Friday.
The price of aluminum on the London Metal Exchange has risen by around a quarter since Washington on April 6 imposed sanctions against allies of Russian President Vladimir Putin, hitting Rusal among other firms.
The Norwegian firm said it had notified Rusal it could declare force majeure on certain contracts as it might be prevented from meeting obligations due to the U.S. measures.
“Hydro estimates the potential impact on its production and customers would not be significant, neither upstream nor downstream,” the company said, adding that the company would work to minimize any impact on its customers.
“While it is too early to say how this may impact the global industry going forward, Hydro monitors the situation closely and is evaluating possible longer-term effects,” it said.
Reporting by Terje Solsvik; Editing by Gwladys Fouche and Edmund Blair