NEWS
Aluminium  

US to lift Rusal sanctions in January

The US Treasury Department said today it will lift sanctions against Russian aluminium producer Rusal on 18 January.

The Treasury intends to terminate the sanctions imposed on Rusal, its parent company En+ and Russian power producer EuroSibEnergy in 30 days, the Office of Foreign Assets Control (OFAC) told Congress today. The decision follows the companies' agreement to conduct corporate governance changes that will significantly reduce the control of these sanctioned entities by Oleg Deripaska, a Russian businessman placed on the US sanctions list on 6 April.

Treasury targeted Deripaska under a US law passed last year that mandated sanctions against business magnates deemed to be in Russian president Vladimir Putin's circle, to protest Moscow's alleged interference in the 2016 US election.

The OFAC decision at that time had strongly affected markets in Europe and globally — Rusal accounts for around 7pc of global aluminium production. The US subsequently delayed the implementation of sanctions on Deripaska's companies to allow them to reduce his ownership below the 50pc threshold that would have triggered sanctions on the companies he controls.

Deripaska's stake in En+ will fall to 44.95pc from 70pc under the terms of its agreement with OFAC. Russian VTB bank or another bank approved by OFAC will take ownership of a bloc of shares Deripaska pledged as collateral for unrelated obligations.

Deripaska is also expected to reduce his stake further through a transaction involving Swiss commodities trading firm Glencore, which will swap shares in Rusal for a direct ownership stake in En+. And Deripaska's voting rights in En+ will be limited to 35pc.

At least half of the board members of En+ will have to be US or UK nationals, and its current chairman, Matthias Warnig, will have to step down.

Deripaska remains on the US sanctions list, so any dividends he receives from his companies and proceeds from sales of his stake will have to be placed in escrow accounts, OFAC said.

Rusal's aluminium output rose by 0.6pc last year to 3.7mn t, while its alumina production increased by 3.3pc to 7.8mn t over the same period. Production has been largely unaffected this year, despite sanctions. But Rusal's sales of primary aluminium P1020 and products were severely affected since buyers delayed purchasing decisions until after the sanctions issue had been resolved.

News No: 3007
Date: 2018/12/20 - 07:08
News Source: Argus Media

US  Rusal  Russian  aluminium  OFAC 

Comments:

Leave a Comment:

   
   
   
 

Don’t give up on the diamond industry just yet

If diamond miner equities are a proxy, the sentiment surrounding the diamond industry is currently at historic low levels. Just in the last two years, a basket of diamond producer stocks was down 28.9% in 2018, following a decline of 17.3% in 2017 (see Figure 1 below).
 

Copper price falls after Chinese economic growth hits 28-year low

The copper price came under renewed pressure on Monday after headline figures showed a slowdown in the Chinese economy to annual rates of growth not seen in nearly three decades.
 

Japan Refiners Load Iran Crude

Fuji Oil, jointly with Showa Shell, has loaded the first Iranian crude oil cargo being lifted by Japanese refiners since the country won a 180-day waiver from the US to import oil from Iran, a Fuji Oil official told S&P Global Platts Monday.
 

Iran to Sell Oil via Stock Exchange for 3rd Time

The third stage of a plan to sell Iranian oil through the stock exchange will kick off this week, the oil minister said.
 

US Could Soon Produce More Crude Than Saudis and Russians

America’s journey to pre-eminence in the global oil trade is about to hit another milestone. By the shale-oil boom, the US is already producing more crude than either Russia or Saudi Arabia, who until recently vied for the top spot. By mid-year America will go one better, Bloomberg reported.
 

Brent, WTI Prices Rise on OPEC Output Cuts

Oil prices rose on Friday after a report from the Organization of the Petroleum Exporting Countries showed its production fell sharply last month, easing fears about prolonged oversupply.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners