(Bloomberg) — Australia’s move to ban alumina exports to Russia is heaping more pressure on Moscow-based aluminum giant United Co. Rusal International PJSC and pushing up prices of the so-called everywhere metal. 

Aluminum jumped and Rusal shares tumbled as Rio Tinto (NYSE:) Group, operator of the Queensland Alumina (OTC:) Ltd. joint venture with the Russian company, said it would comply with all of Canberra’s directions. Rio reiterated that it was in the process of terminating its commercial relationships with Russian businesses following the country’s invasion of Ukraine. Rusal owns a 20 percent stake in Queensland JV. 

Also see: Rio Tinto Severs All Commercial Ties with Russian Business

Scott Morrison, Australia’s Prime Minister, announced that a vessel due to dock next week to receive a cargo of alumina, which is the essential ingredient in aluminum manufacturing — was not going to be delivered as the ban was implemented on Sunday. Australia supplies nearly 20% of Russia’s alumina and its exports of aluminum ores, including bauxite, to Russia have also been prohibited.

The London Metal Exchange saw aluminum jump as high as 4.8% early Monday morning. Aluminum — which is used in every aspect of aluminum products, including cans and parts for airplanes and windows frames — was running out even before the turmoil in global commodity markets. This new development could add to inflationary pressures in the global economic system.

Russia is the main supplier of aluminum to countries like Turkey, China, Japan and Japan. As of 10.43 am in Singapore, the metal had risen 4.4% to $3.529 per ton on LME. It is currently up about 26% for this year. 

Rusal stated in a statement it was reviewing the effects of the ban. Rio plans to stop supplying bauxite to, and buying alumina from, Rusal’s Aughinish plant in Ireland, people familiar with the matter said earlier this month. The company’s shares dropped as much as 8.9% in Hong Kong on Monday following Australia’s announcement. 

While aluminum hasn’t been targeted by global sanctions, Rusal — which needs bauxite and alumina to feed its plants — is facing disruption to its supply chains as companies pull back from doing business with Russia. Because of logistical and transport problems arising from war, Rusal has reduced its output from Nikolaev alumina refining plant in Ukraine.  

Australia said the ban would apply to “all relevant shipments” to Russia, although it’s unclear whether Rusal will be able sell alumina from its Queensland mine onto the market, and then buy the feedstock from alternative suppliers. If the Russian company isn’t able to do this, then prices will likely see more upward pressure. 

“The spirit of the sanctions announced would probably suggest that Rusal won’t be allowed to profit financially from alumina sales at all, but this is unclear in the current wording,” Gavin Wendt, senior resources analyst at consultancy Mine Life Pty, said by email. 

Rusal was founded by Russian tycoon Oleg Deripaska, who retains an interest via his shareholding in Rusal’s majority owner En+ Group International PJSC. Last week, the Australian government announced new sanctions targeting oligarchs who are close to Vladimir Putin. 

EN+ Group said earlier this month it was considering a potential carve out of Rusal’s international business, creating a new company to house its alumina, bauxite and aluminum assets across the globe which would no longer have any Russian ownership. 

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