Glencore likely to declare force majeure on some aluminum supply

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Swiss-based trading and mining giant Glencore will declare force majeure on some aluminum supply, days after the United States sanctioned major supplier Rusal and its boss, metals magnate Oleg Deripaska, a source familiar with the matter said.

Glencore is a Rusal shareholder and one of its biggest customers. Glencore Chief Executive Ivan Glasenberg resigned from his role as Rusal director on Tuesday.

Force majeure is a clause in contracts that allows both parties to walk out of the contract when an extraordinary event or circumstance beyond the control of the parties happen.

It was not immediately clear what volume would come under force majeure or which buyers might be affected.

On Friday, the United States widened its sanctions against Russia to include allies of President Vladimir Putin as punishment for Moscow’s alleged meddling in the 2016 U.S. election and other “malign activity”.

The inclusion of Rusal marks the first time a major international company has been targeted by Washington in its moves to punish Russia for alleged meddling in the 2016 U.S. election.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow