US Extends Deadline for Sanctions on Russian Van-Maker GAZ

Rusal shakes up board to slip out of US sanctions

Rusal shakes up board to slip out of US sanctions

"Following the efforts of the company's management to protect its interests and shareholders, following the introduction of USA sanctions, Oleg Deripaska, the non-executive director, resigned on May 25, 2018", the report states.

Russian aluminium giant Rusal said Friday that Oleg Deripaska has resigned his seat on the board, a key step in the company's efforts to escape United States sanctions targeting its founder and key shareholder.

"The business of newly sanctioned institutions accounts for less than 2% of our assets, so it will, of course, affect us to some extent, but we still need to see what happens to them, as talks on lifting sanctions for Rusal and some other companies".

"Aluminium has so far done very little despite the news of Deripaska resigning as a director of Rusal in an attempt to ease sanctions against the company", said Matt France, an analyst at the Marex Spectron commodities brokerage. GAZ's removal depends on "divestment and relinquishment of control of GAZ Group by" any sanctioned individuals, "including Oleg Deripaska", Treasury said.

On April 23, the US Treasury said it would consider lifting sanctions on Rusal if Deripaska ceded control, while extending the deadline for companies to exit dealings with Rusal by nearly five months, to October 23 this year.

Rusal said their departures were part of efforts "to protect the interests of the Company and its shareholders".

The government source, who spoke on condition of anonymity, said Deripaska had asked the government to start buying aluminium from Rusal and had also applied for loans for Rusal from Russian lender Promsvyazbank.

As at the date of this announcement, the Company has not received any formal resignation from Mr Deripaska. In addition, since June 28, members of the En+ board of directors, which is controlled by Deripaska, have left their posts.

The exodus means that Rusal's 18-strong board prior to sanctions being imposed in April has been reduced to just six. Rusal declined to comment. He had only previously indicated he wouldn't seek reappointment next month to Rusal's board, and pledged to reduce his stake in the firm.

Treasury issued an update to its Russian sanctions program on Tuesday directed at GAZ, which Deripaska controls.

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