Russian aluminum giant Rusal has paid production taxes to Jamaica

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Russian aluminum giant Rusal has paid production taxes to Jamaica

The Russian aluminum giant Rusal has been making steady payments to Jamaica as part of a 2021 agreement to pay back production taxes it owes the government, according to Jamaican Transport and Mining Minister Audley Shaw.

Rusal has paid about 45% of a $35 million bauxite production levy that it owes Kingston, Shaw told Reuters.

He said that they are current in payment. They have been consistent. As part of the 2021 agreement, Rusal paid the government 40% of the debt upfront last fall and then agreed to make 30 monthly payments starting in November 2021.

They have been honouring the agreement, Shaw said.

Russia called March's invasion of Ukraine a special military operation and triggered a series of international sanctions against Moscow and Russian-based companies.

Rusal is not under any sanctions from Jamaica or the United States, but the company has warned that Western sanctions on Moscow may complicate its international projects.

Rusal, the world's largest aluminum producer outside of China, runs a bauxite and alumina production complex in Jamaica via its subsidiary WINDALCO.

According to its website, WINDALCO has an annual production capacity of 502,000 tons of alumina and 4 million tons of bauxite. In 2020, Rusal produced 8.2 million tons of alumina, a key raw material used to make aluminum.

Rusal's founder, Russian aluminum tycoon Oleg Deripaska, has been sanctioned by the United States, the European Union and Britain. Deripaska has previously called for peace.

Rio Tinto, one of the world's largest aluminum producers, said earlier this month that any sanctions on Rusal would cause significant disruption to the global aluminum market.