Rusal warns sanctions 'materially adverse' to company; CEO, seven directors to resign

Cheryl Sanders
May 25, 2018

The Russian aluminium giant also signalled that turmoil could return to metals markets if the sanctions aren't removed by October, saying that banks will likely cut ties with the company, which would "severely impact" metal production and sales.

There was no mention in the company's statement about Deripaska ceding his control over the company, a step the USA government is likely to insist on before it considers lifting the sanctions.

Rusal resumed shipping aluminum to some customers last week following an extension of the deadline for companies to wind down contracts under the usa sanctions, sources told Reuters.

'It should be noted that the US Treasury's list of senior foreign political figures and oligarchs was published after the applications and approvals [of the wealthy Russian individuals],' the response says.

"Oleg Deripaska, non-executive director of the Company, has tendered his resignation as a director of the Company with effect from 25 May 2018", the company's statement said.

Rusal is the parent company of Aughinish Alumina in Co Limerick.

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

Deripaska also sought state support for automaker GAZ, which is part of his business empire and has also been affected by the sanctions, the source said. He also resigned from the board of EN+.

A Treasury spokesman did not reply to a request for further clarification of Tuesday's guidance.

Mr Deripaska is understood to have quit the boards of EN+ and Rusal, which were based with finance firm Intertrust, in order to avoid the sanctions being applicable. Evgeny Nikitin, who previously served as director of the company's aluminium division, will replace her as acting chief executive.

Putin advisor Andrei Belousov told RIA Novosti state news agency such a proposal does exist but declined to comment on the state's position about intervening to help the firm.

The company's statement explained that the board of directors had adopted the Barker's plan (named after the predecessor of the board Gregory Barker), implying the removal of sanctions from the company by reducing the share of Deripaska below 50%.

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