“What you’d get is a very strong inflationary potential outcome in the European Union itself, and the impact on Russia would not be significant. Therefore you would be harming Europe much more than Russia,” he said as he arrived at Bord Bia Bloom.

Asked about the possibility of nationalising the plant, given its role in manufacturing a key national resource, he said: “There’s a lot of complexities attached to that, that would not be simple, whether Government has the capacity to do that and run a plant of that kind.

“I think at this stage, it’s not something we’re contemplating at all.”

The Taoiseach’s comments follow reports of a letter from Aughinish Alumina to the Government suggesting that moves to sanction the company could have consequences for Ireland’s electricity and gas grids.

The plant exports excess electricity to the network, providing enough power for 200,000 Irish households.

Mr Martin said the arguments made in the letter were not new. He added that sanctions on the company would affect up to 1,500 workers, including directly employed staff and contractors.

“The whole principle of sanctions is we don’t damage ourselves more than Russia, or that they don’t become self-defeating. It would appear to me that Aughinish falls into that category,” Mr Martin said.

He said he did not believe the letter was a threat from the company, adding that the issues raised were “self-evident” given the scale of Aughinish Alumina’s operations.

Asked if nationalisation would prevent the export of materials to Russia, he said that suggestion was “too simplistic”.

Sanctions against Russia 

Meanwhile, Tánaiste Simon Harris said Ireland’s position on sanctions against Russia is “clear and consistent”.

“We’ve been extraordinarily supportive of sanctions, I’m pleased that there’s a further sanctions package being currently developed and underway, I hope to see that agreed in Brussels shortly,” he said.

“And indeed I hope and expect that we’ll see further sanctions during the Irish presidency of the council of the European Union, because the sanctions are working, and putting pressure on the Russian economy, which is exactly what we need to do.

“Based on what we’re hearing emerging, it’s likely the European Commission may not recommend the inclusion of sanctions on that company, at this moment, but it is important that there is a full, thorough investigation.”