So far, the US has sanctioned 14 individuals as well as many companies who are believed to be closely allied with Russian President Vladimir Putin. One is that the Trump administration has little understanding of the impact of its moves before it makes them.
"Aluminium is going to remain volatile depending on how the sanctions play out, but at the end of the day it will return to the range either side of $2,200 until we see evidence of stronger economic growth".
Aluminum prices pulled back from a seven year-high following statements from the US Treasury which made clear it's not pushing for Rusal's collapse..
Bloomberg reported that Mnuchin also met with Russian Finance Minister Siluanov during International Monetary Fund meetings in Washington last week and laid out a path for easing sanctions on Rusal - if Deripaska divests and relinquishes control. In the long run, that exposure to all the commodities involved in aluminum production is a positive, Deutsche Bank analyst Chris Terry said in a Monday note hiking Alcoa's price target to 70 from 60, apparently just ahead of the Rusal news.
Rusal produces about 6 percent of the world's aluminum and operates mines, smelters and refineries across the world from Guinea to Ireland and Russian Federation to Jamaica.
On Monday, the Department of the Treasury's Office of Foreign Assets Control (OFAC) issued a licence allowing U.S. and non-US parties up to October 23 to engage in particular transactions relevant to winding down or maintaining business with UC Rusal and its subsidiaries.
The Office of Foreign Assets Control said "the path for the United States to provide sanctions relief is through divestment and relinquishment of control of Rusal by Oleg Deripaska". Other metals prices and crude oil also retreated somewhat. The metal hit a three-year high on April 19 on fears that sanctions might be extended to major producer Nornickel, a company linked with both Rusal and Deripaska.