Own Rio Tinto (ASX:RIO) shares? Here’s why the miner is ‘closely monitoring’ the Ukraine situation’

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“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

Rio Tinto Limited (ASX: RIO) is watching the Russian invasion of Ukraine closely as the business looks to consider what this means for its business.

The business has indirect dealings with Russia because the Rusal business has a 20% interest in the Queensland Alumina Limited (QAL) business in Australia. When sanctions were implemented in 2018, the miner also noted that it reviewed Rusal’s associated supply and offtake arrangements, bauxite sales to Rusal’s refinery in Ireland and offtake contracts for alumina that are used at Rio Tinto’s smelters.

But that was in 2018.

Right now, there is a global surge of businesses committing to end ties with Russia and its oligarchs.

Rio Tinto is being urged to look at the joint venture to ensure they are blocked from receiving any profit from Australia’s natural resources, according to reporting by The Guardian.

The newspaper quoted Dan Gocher, the director of climate and environment at the Australasian Centre for Corporate Responsibility, who said that companies with links to Russia:

…must immediately review their relationships with companies owned or part-owned by oligarchs aligned with Russian President Vladimir Putin. The world has spoken, and the strategy now is to isolate Russia completely.

Rio Tinto’s ongoing cooperation with oligarch-owned companies legitimises Putin’s regime.

Furthermore, some of the profits from Australian alumina and oil and gas projects will end up in the hands of the people responsible for propping up Putin’s murderous regime.

What does the ASX miner make of this?

The miner is one of the largest resource businesses in the world. Global events can have effects on both its operations and investor ESG sentiment on the business.

The Guardian quoted a spokesman who said the company was:

…closely monitoring the situation in Ukraine and related sanctions. We are confident that we have appropriate structures in place to ensure QAL’s operations will not be disrupted.

Time will tell whether this actually has any impact or changes for Rio Tinto or the QAL business.

Rio Tinto share price snapshot

Since the start of 2022, the Rio Tinto share price has risen by 27%.

The post Own Rio Tinto (ASX:RIO) shares? Here’s why the miner is ‘closely monitoring’ the Ukraine situation’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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