Rusal 2025 Loss Highlights Cost Pressure on Russian Aluminium Producer

Rusal

Rusal 2025 loss results show how currency pressure, higher raw material costs, and disrupted sales routes continue to weigh on Russia’s aluminium sector. The Russian aluminium producer posted a net loss of $455 million in 2025 despite higher revenue and stronger aluminium selling prices.

Rusal 2025 loss was driven largely by $431 million in exchange rate losses as the strong rouble reduced earnings. The company also faced a 12.4% rise in production costs to $2,276/t, mainly because raw petroleum coke prices increased by 21.8%.

The Rusal 2025 loss also reflects the cost of operating under sanctions. Selling expenses rose by 25% as logistics costs increased and the company continued to adjust sales chains after western markets restricted exchange-traded Russian-origin aluminium.

Higher Revenue Failed to Offset Sanctions and Cost Inflation

Rusal’s revenue rose by 22.6% to $14.81 billion in 2025, supported by stronger aluminium buying prices. Average aluminium selling prices increased by 5.23% to $2,652/t, while alumina prices fell by 23.26% to $386/t.

However, stronger sales did not translate into profit recovery. Earnings before interest, tax, depreciation, and amortisation fell by 29.5% to $1.05 billion, showing that higher volumes and better aluminium prices were not enough to absorb cost inflation and foreign exchange losses.

Aluminium production declined by 1.85% to 3.92 million tonnes. However, sales rose by 16.35% to 4.49 million tonnes as Rusal sold down stocks that had built up in the previous year.

Upstream Growth Expands Alumina and Bauxite Supply Base

Rusal increased alumina output by 6.66% to 6.86 million tonnes in 2025. The increase was supported by its 30% stake in Chinese alumina producer Hebei Wenfeng New Materials and a 26% stake in India’s Pioneer Aluminium Industries.

The company also expanded bauxite production by 16.17% to 18.45 million tonnes. Growth came from capacity expansion projects at its Compagnie des Bauxites de Kindia and Dian-Dian mines in Guinea.

These upstream gains strengthen Rusal’s raw material position. Still, they do not fully remove the strategic pressure from sanctions, logistics disruption, currency volatility, and rising input costs.

The Metalnomist Commentary

Rusal’s results show that aluminium producers can face margin pressure even when headline prices improve. For Russian aluminium, the central challenge is no longer only production scale, but the cost of reaching markets under sanctions and fragmented trade routes.