Ireland Seeks EU Funds to Keep Aughinish Alumina Open Amid Russian Sanctions Threat

The Irish Government plans to seek EU financial aid to keep Aughinish Alumina open for European industry if sanctions against its Russian owners lead to state control. The Co Limerick plant, employing 459 staff, faces threats from EU measures to block large alumina exports to Russia, a material used in aluminium for Russian military applications in the war on Ukraine.

Aughinish is a critical supplier for European manufacturing, particularly the aviation and automotive sectors. The loss of Russian sales would cause significant losses, making a trade sale difficult and prompting discussions in Dublin about state control, which officials insist requires EU financial support. Securing new bauxite supplies is also a concern if current owners stop deliveries from their Guinea mines.

The future of Aughinish may be discussed during Ireland’s upcoming six-month EU Council presidency, with European Commission President Ursula von der Leyen visiting Cork next Friday. The Department of Enterprise is nearing completion of an inquiry into Russian exports from Aughinish, triggered by reports of alumina being sent to smelters making aluminium for the Russian military.

Senior Irish and European officials anticipate the review's findings will lead to EU measures stopping Russian exports. Aughinish is controlled by EN+, with Oleg Deripaska as a major shareholder. Dublin officials expect export controls, rather than financial sanctions against EN+ or Rusal, Aughinish’s immediate parent, which would impact Russia’s war machine but threaten Aughinish’s viability.