According to the announcement from United Company Rusal (Rusal), a large number of competitors were worried about new contracts made by Rusal, and it was possible that they would suspend the contracts unless the US sanction was lifted or new permissions could be given from the foreign asset management office.
In addition, the international financial institutions might suspend business with Rusal after October 23rd 2018, and Rusal's metal production and sales would be severely affected.
The announcement showed that the reduction in sales and additional costs were associated with the rearrangement of the entire supply chain, and they could lead to a substantial reduction in the earnings before interest, taxes, depreciation, and amortization (EBITDA) and cash flow.
There was limited opportunities to obtain financing under commercially reasonable terms for Rusal, and it might not be able to maintain its operating performance at a specific level for maintaining service and debt repayment.
US' sanctions influence Rusal's operating performance
25 May 2018 15:56 reported by Eva
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