Aluminum Giant Rusal Fell 22 Percent, The Biggest Drop Since April 2018.

In Hong Kong, Rusal shares fell as much as 22 per cent, their biggest drop since April 2018, as investors saw a sharp escalation in the stand-off between the West and Moscow over Ukraine. At the time, the US Treasury Department cited Russia's "malign behaviour around the world", which led to an earlier round of US sanctions against Rusal.

The situation in Ukraine has heightened the dangers facing the world's largest aluminium producer as fears grow that escalating tensions or more war in Ukraine could hamper trade and lead to further sanctions against Russian companies. The administration has said it will announce new measures on Tuesday; However, it is not clear what those sanctions will be. Rusal shares plunged to their lowest level since September as currencies tumbled and oil prices rose.

Rusal accounts for the vast majority of Russian aluminum exports, accounting for about 5 percent of global production. Sanctions imposed on the company in 2018 sent global markets into turmoil, causing costs to soar and protests from producers unable to obtain the metal.

Despite claims by the US and its Allies that Russia is planning an attack on its smaller neighbour, Moscow has rejected such preparations. Aluminium prices surged to their highest intraday level in more than 13 years on Tuesday, nearing a new peak. The metal rose 1.2 per cent to $3,319 a tonne as of 11:50am in Shanghai. Nickel prices have risen to their highest level since 2011. Russia is also a major producer of nickel.

Rusal is one of the main companies targeted by U.S. sanctions. The previous restrictions were lifted in January 2019 after Rusal's billionaire founder, Oleg Deripaska, decided to transfer control.