U.S. lifts sanctions on Rusal, other firms linked to Russia's Deripaska

US lifts sanctions on Rusal, other firms linked to Russia's Deripaska

Washington Lifts Sanctions Against Russian Companies En+, Rusal, Eurosibenergo

That pushed aluminum prices on the London Metal Exchange down 2 percent on Monday to near $1,880 a tonne.

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 providing extensive disclosures, the department said in December when announcing its plans to remove the sanctions.

Earlier this month, congressional Democrats narrowly failed to pass a measure that would have stopped Treasury from lifting the sanctions, despite attracting the support of 136 Republicans in a significant rebuke to President Donald Trump's administration.

On January 17, lawmakers in the U.S. House of Representatives passed a resolution to stop sanctions on the companies from being lifted.

"This action ensures that the majority of directors on the En+ and Rusal boards will be independent directors - including USA and European persons - who have no business, professional, or family ties to Deripaska or any other [sanctioned individuals], and that independent US persons vote a significant bloc of the shares of En+", it added.

This move "ensures that the majority of directors on the En+ and Rusal boards will be independent directors - including USA and European persons - who have no business, professional, or family ties to Deripaska" or any other entities or individuals sanctioned by the U.S, TASS reported.

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FSIS is advising consumers to purge their freezers of the affected product as the contamination is considered a high health risk. Officials said consumers who have bought the products and frozen them should either return or throw them away.

Rusal is among the largest companies the USA has ever put on its sanctions designation list.

EN+ Chairman Lord Barker said on Sunday night that the sanctions removals mark a turning point for the company, calling the moves "a clear victory for muscular corporate governance".

"The Company also announces that Mr. Philippe Bernard Henri Mailfait... has tendered his resignation as an independent non-executive Director", the statement read.

Trump administration officials, who welcomed the delisting, said they feared the impact of the sanctions on the global aluminum industry.

They also said Deripaska's decision to lower his stakes in the companies so that he no longer controlled them showed that the sanctions had worked.

Moscow has denied seeking to influence the US election. Deripaska is a client of Trump's former campaign manager Paul Manafort and Christopher Bancroft Burnham, who served on Trump's State Department transition team, was appointed to the board of EN+ as part of the deal to lift the sanctions. Manafort pleaded guilty in September 2018 to attempted witness tampering and conspiring against the United States. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy.

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