Swedish tax authorities have determined that the metals giant Rusal, owner of the Aughinish Alumina refinery in County Limerick, remains under the control of sanctioned oligarch Oleg Deripaska. Following this 73-page ruling, the Swedish tax agency, Skatteverket, has frozen 56,787,686 SEK (€5.1 million) in the tax account of Kubal, a Swedish aluminium smelter owned by Rusal. The decision identifies that despite previous attempts to restructure Rusal’s ownership, Deripaska retains effective control over the group, including its Irish operations, through the energy conglomerate EN+.
Why Swedish authorities ruled against Rusal
Skatteverket concluded that the 2018 restructuring of EN+, which was intended to reduce Deripaska’s voting rights below 50 percent to satisfy U.S. sanctions, has become a “fiction.” The agency cited “presidential Decree No. 16,” an order from Russian president Vladimir Putin that prevents shareholders from “unfriendly states” from voting on company matters. By excluding these shareholders, Deripaska’s voting power on the board rises to 70 percent. According to the Swedish judgment, this allows him to take all decisions falling within the competence of the general meeting, regardless of whether he chooses to exercise that power.
Oleg Deripaska, who founded EN+ in 2002, was placed under U.S. sanctions in 2018 alongside his companies Rusal and EN+ due to alleged interference in the U.S. presidential election.
Implications for the Aughinish Alumina refinery
While the Swedish ruling specifically impacts the Kubal smelter—which relies on alumina supplied by the Limerick plant—it has intensified pressure on the Irish Government. Aughinish Alumina has previously stated that Deripaska does not exert control over its day-to-day operations or strategy. However, reports indicate that the plant exports vast amounts of alumina that enter supply chains linked to Russia’s military industry, potentially fueling the production of missiles, tanks, and aircraft for the war in Ukraine.
The Swedish ruling creates a complex legal and political friction point. By characterizing the previous ownership restructuring as a “fiction” due to Russian state mandates, the Swedish tax authority has challenged the compliance model that has protected Aughinish from sanctions since 2018. This suggests that future EU-level debates on alumina exports may move beyond simple supply chain concerns and toward a fundamental reassessment of corporate control.
What happens next?
The Irish Government is currently finalizing its own investigation into the Aughinish refinery. The Swedish developments and the broader role of the plant are expected to be discussed this week as Ireland assumes the EU presidency. Taoiseach Micheál Martin has stated that the government has not specifically requested financial support for the event of a closure, but noted that such a situation would have to be “weighed up.” Meanwhile, Kubal has appealed the Swedish tax judgment, warning of severe economic consequences for the region.
Frequently Asked Questions
Why did Swedish authorities freeze Kubal’s funds?
Skatteverket froze the funds after determining that Rusal remains under the control of Oleg Deripaska, who is under EU sanctions over his role in supporting the invasion of Ukraine through the manufacture of military hardware for Russia.
Does the Swedish ruling apply to the Aughinish plant in Ireland?
The judgment specifically concerns Rusal’s Swedish operations and the Kubal smelter. However, the ruling states that all of Rusal’s operations in Europe, a group that includes the Irish plant, should be subject to EU sanctions, increasing pressure on Irish and European authorities to address the status of the Limerick facility.
What is the Irish Government’s position on sanctioning Aughinish?
Taoiseach Micheál Martin stated that alumina has not yet been placed on the EU sanctions list because it is considered part of a “wider European supply chain issue.” He rejected the suggestion that Ireland’s commitment to Ukraine has been damaged by the plant’s continued exports.
How do you believe the Irish government should balance the protection of local jobs at the Aughinish refinery against the concerns regarding its role in the global supply chain for Russian military production?
