Trump Lifts Rusal, EN+ Sanctions as Glencore Shuffles Stake


(Bloomberg) -- The U.S. Treasury Department on Sunday lifted sanctions on three firms tied to Russian tycoon Oleg Deripaska, including United Co. Rusal, a move that will provide relief to the global aluminum market.

Deripaska, an ally of Russian leader Vladimir Putin, will remain under U.S. sanctions, and his property will remain blocked. But the Treasury Department is removing restrictions on Rusal, EN+ Group Plc and EuroSibEnergo JSC.

"The companies have also agreed to unprecedented transparency for Treasury into their operations by undertaking extensive, ongoing auditing, certification, and reporting requirements. All sanctions on Deripaska continue in force," the Treasury's Office of Foreign Assets Control said in a release.

In a separate statement, EN+ announced the addition of seven independent directors to its board, as well as a securities swap with Ivan Glasenberg's Glencore Plc. Under the deal, the London-listed commodity trader will get global depositary receipts representing 10.55 percent of EN+'s enlarged share capital in exchange for its existing 8.75 percent stake in Rusal.

Congressional Democrats has tried to block the action, citing concerns about the Trump administration's motives at a time when Special Counsel Robert Mueller is continuing his investigation of Russia interference in the 2016 presidential election and possible connections to the Trump campaign.

Read more: GOP Senate Backs End to Sanctions on Firms Tied to Putin Ally

Aluminum Market

Sanctions relief for Rusal, the world's second largest aluminum producer, will remove a source of uncertainty from the aluminum market. Prices surged in April when Treasury announced the financial restrictions. But prices tumbled in recent months on speculation that the Rusal sanctions would be lifted.

Deripaska's agreement with Treasury, negotiated over eight months, includes cutting his direct and indirect share ownership below 50 percent in each company, overhauling the boards of En+ and Rusal, and "committing to full transparency with Treasury by undertaking extensive, ongoing auditing, certification, and reporting requirements," the department said in December when announcing its plans to remove the sanctions.

Read more: Details of Deripaska's Deal with the U.S. to Lift Rusal Sanctions

Rusal is among the largest companies the U.S. has ever put on its sanctions designation list. The value of the aluminum producer has declined by more than half from $9.2 billion more than eight months ago.

(Adds EN+ agreement with Glencore in fourth paragraph.)

To contact the reporter on this story: Saleha Mohsin in Washington at

To contact the editors responsible for this story: Alex Wayne at, Jake Lloyd-Smith, Jason Rogers

For more articles like this, please visit us at

©2019 Bloomberg L.P.


More Related News

Bill Gates Says Taxing Capital Gains Is the Best Way to Tap
Bill Gates Says Taxing Capital Gains Is the Best Way to Tap 'Big Fortunes'

"We only collect about 20 percent of GDP and we spend like 24 percent of GDP. Proposals have circulated recently for the richest Americans to again face a top marginal tax rate of 70 percent, as they did during much of the 1970s before it was lowered by President Ronald Reagan, and for other wealth-focused measures to be taken to address rising income inequality in the U.S. "If you go about doing this additional collection, of course you want to be progressive, you want the portion that comes from the top 1 percent or top 20 percent to be much higher," he said.

Email Address Given to Ocasio-Cortez Beau Sparks Heated Exchange
Email Address Given to Ocasio-Cortez Beau Sparks Heated Exchange

"While you were having a nice Valentine's Day, @AOC decided to put her boyfriend on staff -- drawing a salary on the taxpayer's dime. Nice to see her adapting to the swamp so quickly," the conservative magazine's Luke Thompson said on his Twitter feed. Other conservative voices piled on, with Katrina Pierson, an adviser to President Donald Trump's re-election campaign, who suggested that "her jobs for everyone starts with her boyfriend.

House Democrats to Investigate Trump
House Democrats to Investigate Trump's Emergency Declaration

The committee, led by Democrat Jerrold Nadler of New York, asked the White House to make available for a hearing administration staff involved in the decision that redirects about $7 billion in the federal budget to construction of a wall on the U.S.-Mexico border.

IRS refund frenzy: Democrats blast Trump Treasury for 'goosing' paychecks
IRS refund frenzy: Democrats blast Trump Treasury for 'goosing' paychecks

The average refund during the first 12 days of filing season was $1,949.

The Ocasio-Cortez Party Turns Amazon
The Ocasio-Cortez Party Turns Amazon's NYC Plans Into HQ0

Amazon's decision to pull out of a planned mega-campus in Long Island City, Queens, is more than a loss for Cuomo. Cuomo and New York City Mayor Bill de Blasio-two Democrats who rarely agree on anything-brokered a truce to put together a $3 billion tax break for Inc. that helped secure one half of a second headquarters.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Latin America

Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.