Millions of US Dollars Owed To Jamaica By UC RUSAL At Risk As West Tries to Cripple Russia's Economy
Recent international measures designed to cripple the Russian economy could stymie efforts by Jamaica to collect millions of U.S. dollars in future bauxite levy revenues from UC RUSAL at a time when the aluminum giant already has a backlog of monies owed.
Even before the invasion of Ukraine, the country’s mining ministry revealed that only late last year did the company begin settling its bauxite production levy debt to the Government of Jamaica that has been outstanding since 2018.
Based on details of a payment plan presented in the ministry’s press release, 18º North estimates that after the US$13.7 million payment by the company in November, representing about 40% of the debt, the amount still owing would be somewhere between US$16 - $18 million, or J$2.5 - $2.8 billion, assuming other monthly payments since then.
Observers say the prospects of collecting that revenue would dim even further if U.S. sanctions, previously lifted on the company in 2019, get reimposed.
Will U.S. Sanctions on UC RUSAL Be Reapplied?
After meeting with high-level officials in the U.S. last week, Jamaica's Prime Minister Andrew Holness told 18º North after a session of parliament Tuesday…