Billionaire Deripaska's "Rusal" Will Shut Down Four Plants
- 28.08.2026, 12:06
Because of the losses.
"Rusal," founded by Oleg Deripaska, may mothball four alumina and bauxite production facilities at once. According to the company, these facilities cost Rusal $800 million in losses annually. The company informed Prime Minister Mikhail Mishustin of the temporary shutdown, reports “Kommersant” reports, citing sources. The closures could affect the Pikalevsky Alumina Plant, the Severo-Uralsky Bauxite Mine, as well as the Bogoslovsky and Ural Alumina Plants. In 2025, the Pikalevsky, Bogoslovsky, and Ural alumina plants produced 2.1 million metric tons of alumina—about 30.7% of the company’s total output of this raw material. Losses from processing raw materials at these plants are estimated at $400 per metric ton of aluminum.
The main risk is layoffs in the single-industry towns where these plants are located, notes a source familiar with the metallurgical market interviewed by *Kommersant*. Rusal is also asking the government for state support for the regions in connection with the planned mothballing of plants, as well as financial support for modernization. The company promises to minimize the socioeconomic consequences. Rusal did not provide a comment. Ahmed Aliyev, a senior analyst at T-Investments, says that in the event of a complete shutdown of its plants, Rusal will likely purchase raw materials on foreign markets, which is more profitable given the current low prices for alumina.
At the end of 2025, Rusal increased its revenue by 22.6% to $14.81 billion but reported a net loss of $455 million. Rusal’s net profit for the first half of 2026 was $419 million, compared with a loss of $87 million a year earlier. However, Rusal is not generating cash for its shareholders. On June 26, shareholders approved a decision not to pay dividends for the 2025 fiscal year. The last time they received dividends was for the first half of 2022.
Revenue problems have forced other steelmakers to begin cost-cutting measures as well. In May, billionaire Alexey Mordashov announced that his company, Severstal, had halted hiring and was considering layoffs due to the crisis in the industry. According to him, the company has also cut this year’s investment program by 24% and plans to slash expenses even further next year. The company is facing a negative cash flow.
En+ owns 56.88% of Rusal, where Oleg Deripaska controls 35% of the voting shares. Rusal is the largest aluminum producer outside of China. In 2025, the company accounted for 5.3% of global aluminum production and 4.7% of alumina production. It owns 11 alumina plants in Russia, Ireland, Italy, Guinea, and Jamaica. The company also owns a 30% stake in the Wenfeng plant in China, a 26% stake in the Pioneer plant in India, and a 20% stake in the QAL plant in Australia.