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Aluminum May 21, 2019 12:30:13 PM

RUSAL's $200M Investment in Braidy Industries Likely to be Investigated

Paul Ploumis
ScrapMonster Author
The investment by a company, whose primary shareholders are a U.S.-sanctioned Russian national and Russian state bank, poses serious threats to national security, they said.
RUSAL's $200M Investment in Braidy Industries Likely to be Investigated

SEATTLE (Scrap Monster): A coalition of Congressional leaders has demanded the Trump administration to investigate into the investment in the new Kentucky aluminum rolling mill facility by Rusal.

According to joint petition by eight prominent Democratic members to the Treasury Department, the $200 million investment by En+-Rusal’s holding company needs to be investigated as the Russian company had been under federal sanctions until recently citing worldwide malign activities of its primary owner Oleg Deripaska. The investment by a company, whose primary shareholders are a U.S.-sanctioned Russian national and Russian state bank, poses serious threats to national security, they said.

ALSO READ: Braidy Industries Aluminum Rolling Mill to Have Economic Impact of $2.8 Billion

The Congressmen suspect involvement of Russian government in the Kentucky investment, which they fear might be later used for political favors. The Russian ownership in a company which has sales deals with defense industries causes potential risks to the integrity of U.S. defense supply chain, they added.

Meantime, the Treasury Department is yet to respond to the demands made by the group of Congressmen.

Earlier in April this year, United Company RUSAL Plc. had announced partnership with Braidy Industries, Inc., in constructing a green field aluminum rolling facility in Ashland, Kentucky. As per the letter of intent (LOI) signed between the parties, Rusal is supposed to hold 40% share in the joint venture entity.