Since Russia began its military operation in Ukraine late last month, on February 24, many companies have severed their ties with Russia. Now one of the biggest mining companies in the world from Australia, Rio Tinto has also decided to cut its relations with Russia. It will review its partnership agreement with the Russian aluminum company Rusal, founded by the Russian oligarch Oleg Deripaska. The company released a statement saying Rio Tinto was in the process of ending any business relationship it has with any Russian company.
It is also looking at its Queensland Alumina Ltd (QAL) joint venture with Rusal, which operates an alumina refinery in Gladstone, according to the Guardian. Rio’s Oyu Tolgoi project in Mongolia, which relies on Russian diesel, will face a fuel supply crisis as a result of Rio’s decision. Rio owns 80% of QAL and Rusal owns 20%. The US government sanctioned oligarchs and corporations, including Oleg Deripaska, in 2018 over concerns over the 2014 annexation of Crimea.
Rio Tinto in search of alternative fuels in Mongolia
Rio Tinto’s stance on Russia was confirmed immediately after Bold Baatar, who heads the company’s copper miner, told an energy conference in Houston that the company was looking for sources. alternative fuels in Mongolia, but might not be able to stop buying altogether. of Russia, according to Sydney Morning Herald. Russia has faced increasing economic sanctions from Western countries as well as multinational corporations.
Worley, which is an Australian engineering company, also announced on Thursday that it would withdraw from Russia and would not sign any new contracts with Russia. The Australasian Center for Corporate Responsibility (ACCR), an activist investor group, applauded Rio and Worley for cutting ties with Russia.
‘All Australian businesses should sever ties with Putin-allied billionaires,’ says ACCR chief
Dan Gocher, head of climate and environment at the ACCR, said that following Russia’s invasion of Ukraine, all Australian companies should cut ties with billionaires allied with the corporations of the Russian President Vladimir Putin, whether wholly or partially owned. He further said that Rio Tinto and Worley should be applauded for taking the necessary steps, according to the Guardian. He also said the global campaign to isolate Putin had accelerated significantly over the past fortnight.