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 smohsin2@bloomberg.net

To contact the editors responsible for this story: Alex Wayne at awayne3@bloomberg.net, Jake Lloyd-Smith, Jason Rogers

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

COMMENTS

More Related News

North Korea confirms leader Kim Jong Un to visit Russia for summit with Putin
North Korea confirms leader Kim Jong Un to visit Russia for summit with Putin
  • World
  • 2019-04-22 22:13:56Z

North Korean leader Kim Jong Un will visit Russia for a summit with Russian President Vladimir Putin, North Korean state media confirmed. With his Russia visit, North Korea's Kim is seen working to build up foreign support for his economic development plans, since the breakdown of the second U.S.-North Korea summit in Hanoi in February led to stalled talks with Washington on the sanctions relief Pyongyang had sought. State media Korean Central News Agency (KCNA) said the visit will happen "soon," but did not elaborate the time or the venue.

Elon Musk Boasts Tesla Built the
Elon Musk Boasts Tesla Built the 'Best Chip in the World,' Drops Nvidia

"At first it seems improbable -- how could it be that Tesla, who has never designed a chip before -- would design the best chip in the world?" the chief executive officer said Monday at an investor day focused on autonomous driving. Tesla switched over to its own chips and self-driving computer from

Beyond Meat Could Be Valued at Up to $1.2 Billion in U.S. IPO
Beyond Meat Could Be Valued at Up to $1.2 Billion in U.S. IPO

The company plans to sell 8.75 million shares for $19 to $21 each, according to a filing Monday with the U.S. Securities and Exchange Commission. The company is one of several makers of plant-based meat substitutes or lab-grown meats that have attracted high-profile backers. Its investors include Microsoft

Russia
Russia's Putin, North Korea's Kim on track to meet by end of April: Kremlin
  • World
  • 2019-04-22 12:52:05Z

MOSCOW (Reuters) - Russia' President Vladimir Putin and North Korean leader Kim Jong Un are on track to meet by the end of April, Kremlin spokesman Dmitry Peskov told reporters on Monday. Last week the Kremlin said that Kim Jong Un would travel to Russia this month, announcing the first Russia-North

N. Korea Says Bolton Comments on Third Summit Are Foolish: KCNA
N. Korea Says Bolton Comments on Third Summit Are Foolish: KCNA

"We never expected anything logical from Bolton, but as national security adviser, he should at least know the context of dialogue that took place between the two leaders regarding a third summit before he says anything," North Korea's Foreign Ministry diplomat Choi Sun Hee was quoted by the news agency as saying.

Leave a Comment

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

Cancel reply

Comments

Top News: Latin America

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