Finance
Russia's Rusal Swings to Annual Loss on Rising Costs, Lower Aluminium Output
Published by Global Banking & Finance Review®
Posted on March 18, 2026
2 min readLast updated: March 18, 2026
Quick Summary
Rusal swung to a net loss of $455 million in 2025, hit by surging costs and a drop in aluminium output, despite higher revenue from increased sales volumes and firmer prices.
Rusal Swings to Loss in 2025 Amid Rising Sales Costs, Lower Aluminium Output
Rusal's 2025 Financial Performance and Market Challenges
Net Loss and Revenue Overview
March 18 (Reuters) - Russian aluminium giant Rusal reported on Wednesday a net loss for 2025, citing higher cost of sales and a decline in primary aluminium production that weighed on its overall performance.
The Hong Kong-listed company, the world's largest aluminium maker outside China, posted a net loss of $455 million for the year ended December 31, versus a net profit of $803 million in 2024.
Impact of Sanctions and Market Diversification
Western Sanctions and Buyer Behavior
Rusal continues to face pressure from the broader impact of Western sanctions imposed on Russia over the Ukraine conflict. Although there are no direct sanctions on Rusal, some Western buyers have avoided entering new contracts for Russian aluminium.
Shift Toward Asian Markets
Since 2022, Rusal has been seeking to diversify more of its sales towards Asian markets to offset declining demand in the West.
European Union Ban and Quotas
Last year, the European Union imposed a ban on Russian aluminium, while allowing a 275,000‑ton import quota during a 12-month transition period.
Sales, Costs, and Production Analysis
Revenue and Cost of Sales
Rusal said its 2025 revenue increased 22.6% to $14.81 billion.
The company, however, also recorded a 32.3% increase in its total cost of sales. The increase was primarily driven by a 16.4% growth year-on-year in aluminium sales volumes, while alumina costs rose 5.4% to $2.29 billion.
Sales Volumes and Production Decline
Rusal's total aluminium sales rose 16.4% to 4.49 million tons in 2025, even as production declined by nearly 2% during the year.
Pricing Trends
The company also benefited from firmer pricing, with the average selling price increasing 5.2% to $2,652 per ton.
LME Benchmark and Global Market Factors
Benchmark three-month aluminium on the LME has risen around 9% since February 28, when the U.S.-Israeli attacks began on Iran, and shipping disruptions through the Strait of Hormuz, with Gulf producers accounting for about 8% of global output.
(Reporting by Rajasik Mukherjee in Bengaluru and Anastasia Lyrchikova in Moscow; Editing by Sherry Jacob-Phillips)
Key Takeaways
- •Rusal posted a $455 million net loss for 2025 versus a $803 million profit in 2024, driven by rising cost of sales and slightly lower aluminium production.
- •Revenue rose 22.6% in 2025 to $14.81 billion, supported by a 16.4% increase in sales volume and a 5.2% rise in average aluminium prices.
- •Western sanctions and market constraints constrained demand in the EU and U.S., pushing Rusal to shift exports increasingly toward Asian markets.
Frequently Asked Questions about Russia's Rusal swings to annual loss on rising costs, lower aluminium output
1What were Rusal's financial results for 2025?
Rusal posted a net loss of $455 million for 2025, compared to a net profit of $803 million in 2024.
2What factors contributed to Rusal's annual loss?
Higher cost of sales and a decline in primary aluminium production were key factors in Rusal's annual loss.
3How have Western sanctions impacted Rusal?
Although not directly sanctioned, Rusal faces reduced Western demand as buyers avoid new contracts for Russian aluminium due to broad sanctions.
4What was the trend in Rusal's aluminium sales and production?
Aluminium sales volume rose 16.4% to 4.49 million tons, but overall aluminium production declined by nearly 2% in 2025.
5How has Rusal responded to declining Western demand?
Rusal has been shifting sales toward Asian markets to offset reduced demand in the West.
