Oleg Deripaska agrees to cede control of firms hit by U.S. sanctions

Washington said earlier this week that it might remove Rusal from its sanctions list if Deripaska ceded control.

Earlier it was reported that Deripaska has chose to reduce the share in the holding company En+, which owns 40% of RUSAL, is below 50%.

THE BILLIONAIRE Russian owner of Aughinish Alumina's parent company, Rusal, has no plans to let go of the company, despite the fact that the U.S. has said that sanctions would be eased if he sold his share. "Rusal hopes that these changes will be noted by the OFAC", the source said.

Two sources told Reuters earlier on Friday that Rusal would soon appoint a fully independent board, which in turn would appoint a new management team in the hope that the usa would remove the firm from its sanctions list. The updated blacklist included major Russian aluminum producer RUSAL which is the world's second-largest aluminum producer and its owner Oleg Deripaska.

It was not immediately clear if the steps announced by En+ on Friday and those the sources said were planned by Rusal would be enough for the USA sanctions to be lifted.

"The company is now working on changing the management team to an independent one and the board of directors to independent representatives who are not affiliated with shareholders".

En+ also said it asked the United States for an extension of the deadline for operations with En+'s debt, equity or other holdings from 7 May to 31 October or another appropriate date. Rusal's other shareholder, Viktor Vekselberg, was also put on the sanctions list.

Without the extension, En+'s ability to maintain its listing on the London Stock Exchange will be affected, it said.

Reuters reported that if Rusal does not succeed in its bid for sanctions relief, the company will be forced to sell all of its aluminum in Russia's domestic market, including selling up to 2 million tons to a state stockpile for building Russian weapons and military hardware.

"In this case, Rusal would leave the global market, and of course no one wants this to happen", the source added.

The Treasury Department has imposed sanctions on seven Russian oligarchs and 12 firms they own or control, including Hong Kong-listed Rusal, saying they were profiting from a Russian state engaged in "malign activities" around the world.

  • Eleanor Harrison