US Treasury prepares to end RUSAL sanctions

RUSSIA / FSU POLITICS - In Brief 20 Dec 2018 by Alex Teddy
On December 19 the US Treasury indicated that it intends to end sanctions against En+ Group, RUSAL , JSC Rus Sib Energo (ESE) in the next 30 days. These companies have agreed to restructure under conditions that severely curb the main controller shareholder Oleg Deripaska. This should deal with the reasons why they were sanctioned in the first place.Deripaska is the major shareholder in these companies. The US Treasury wants to see his stake (direct and indirect) reduced to under 50%. Deripaska is a Russian billionaire who is also a citizen of Cyprus. As a Cypriot citizen he is also an EU citizen. Mr Deripaska is to remain sanctioned as will any company in which he owns over 50%. He will be prevented from obtaining cash or dividends from his shares. The US Treasury wishes to see changes to the boards of director of these companies and improvements in corporate governance. RUSAL’ chairman of board of directors must retire from his position. Half the board members of the three companies must be Americans or British citizens. Andrea Gacki (Office of Foreign Assets Control) wrote to Senator Mitch McConnell. McConnell is a very long serving Republican politician and Majority leader of the US Senate. Despite the Republican Party losing the House of Representatives in November 2018 they retained control of the Senate and indeed made a net gain of two seats. He has sometimes been critical of President Trump. The On April 16 2018 the OFAC (Office of Foreign Asset Control) sanctioned 7 wealthy Russians whom it dubbed ‘oligarchs’ including Oleg Deripaska and 17 senior ranking officials. Various Russian businesses were also subjected to sanctions. The reasons stated for the sancti...

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