Global mining group Rio Tinto said on Friday that it is reviewing arrangements with Russian companies impacted by US sanctions.
The arrangements impacted include Rusal's 20% interest in Rio's Queensland Alumina in Australia, including associated supply and offtake arrangements, bauxite sales to Rusal's refinery in Ireland and offtake contracts for alumina used at Rio Tinto's smelters in France and Iceland.

Russian aluminium producer Rusal, which had $7.5bn net debt at the end of 2017, has been hit particularly hard by the sanctions and will receive short term liquidity from the Russian state according to the Kremlin.

In a statement Rio Tinto said: "As a result of the imposition of these sanctions, Rio Tinto is in the process of declaring force majeure on certain contracts and is working with its customers to minimise any disruption in supplies."

The sanctions, imposed on a number of Russian individuals and companies, were passed by the US Treasury department on 6 April in response to "malign activity" such as alleged meddling in the 2016 US Presidential election.

So far, 17 Russian government officials were affected as were seven of Russia's richest men and their companies, including Oleg Deripaska and his company Rusal.

The sanctions prohibit Americans from doing business with the companies, and people of other nationalities could face sanctions themselves if they are found to have facilitated transactions.

Rio Tinto said it is committed to fully complying with the sanctions.

The news follows yesterdays revelations that two former Prime Ministers of Mongolia have been arrested in connection with an investigation into corruption and misuse of power in mining deals with Rio Tinto.

Chimediin Saikhanbileg and Sanjaagiin Bayar will be held in a detainment centre for 30 days after being detained on Wednesday in relation to their handling of two agreements related to the massive Oyu Tolgoi gold-copper mine.

As of 1613 BST, Rio Tinto's shares were up 0.88% at 3,783.00p.

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