Deripaska steps down as Rusal director due to US sanctions

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Russian businessman Oleg Deripaska, due to the sanctions of the US Treasury, decided to quit the board of directors of the group of companies En + Group, which is part of the “Basic Element” holding and controls the billionaire’s assets in energy, non-ferrous metallurgy, mining and logistics.

As stated in the press release, Deripaska agreed to reduce his stake in En + Group from 66% below the 50% mark. This happened after the discussion of the situation with the chairman of the board of directors of the company  Greg Barker.

The businessman not only made a decision to leave the board of directors, but also agreed to appoint new independent directors, who will receive a majority in the council.

Moreover, En + Group sent a request to Washington to extend the validity of license N13 concerning the timeframe for US investors to leave the company’s shares and other securities, before October 31, 2018 or until the date that the agency deems appropriate.

En + Group also asked the US authorities to extend the license for business operations with the company (license N12).

 In early April, the US Ministry of Finance announced the inclusion f 38 Russian businessmen, officials and companies in the sanctions list. Some of them are controlled by Deripaska’s structures: Basic Element, En + Group, Rusal, GAZ Group, Agroholding Kuban, B-Finance, Eurosibenergo and Russian Machines. Sanctions provide for the complete isolation of the company from the American financial system, which, in particular, means a ban on conducting transactions in dollars.

Later, the US Treasury said it could lift restrictions on Rusal (aluminium), if Deripaska ceases to control the company. They noted that they do not want to harm people who do hard work and who depend on Rusal and its subsidiaries. Recall, the US has recently asked the EU to reduce their exports of aluminium by as much as 90%, and increase tariffs of aluminium import to China from the US. Is this about a monopoly?

The media reported that Rusal, in an attempt to achieve a relaxation of US sanctions, could change the board of directors by making it completely independent. The company hopes that its largest shareholder, Deripaska, who along with the company was included in the sanctions list, will be able to maintain a 48% stake in these agreements.

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Source KtovKurse
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