Published by Global Banking & Finance Review®
Posted on August 15, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleRusal reports a $87M loss in H1 2023 due to rising costs and sanctions. Revenue rose 32% to $7.52B, but expenses surged, impacting earnings.
(Reuters) -Rusal reported a first-half net loss on Friday, as rising costs, higher interest expenses and foreign exchange fluctuations weighed on the Russian aluminium producer's earnings.
The Hong Kong-listed company, the world's largest aluminium maker outside China, swung to a net loss of $87 million for the six-month period ended June 30, from a profit of $565 million last year.
Rusal has faced sustained pressure for more than three years from the fallout of Western sanctions on Russia over the war in Ukraine. While not directly sanctioned, the company has seen some Western buyers avoid new contracts for Russian metal.
Finance expenses surged by $408 million, reflecting higher interest on bank and company loans, bonds and other charges, while a foreign exchange loss added $181 million to the bottom-line hit.
Cost of sales jumped about 40% to $6.11 billion, driven by increased volumes of primary aluminium sales and higher alumina and raw material prices, as well as elevated electricity and transport costs.
Still, Rusal's revenue rose 32% to $7.52 billion due to higher sales of primary aluminium and alloys.
(Reporting by Rishav Chatterjee and Sameer Manekar in Bengaluru; Editing by Sherry Jacob-Phillips)
A net loss occurs when a company's total expenses exceed its total revenues, resulting in a negative profit for a specific period.
Foreign exchange fluctuations refer to changes in the value of one currency compared to another, which can impact international trade and investments.
Corporate profits are the earnings a company generates after all expenses, taxes, and costs have been deducted from total revenue.
Sanctions are penalties or restrictions imposed by countries or international bodies to influence or punish a nation or organization for specific actions.
The cost of sales refers to the direct costs attributable to the production of the goods sold by a company, including materials and labor.
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