Oleg Deripaska becomes accustomed to the state

The government will purchase 50 billion tons of primary aluminum from Rusal to the Rosrezerv for 10 billion rubles. Oleg Deripaska had previously offered to purchase up to 1 million tons of metal at public expense.
28.11.2018
Kommersant
Origin source
The government will allocate Rosrezerv to 10 billion rubles. for the purchase of up to 50 thousand tons of aluminum to help Oleg Deripaska, who fell under the sanctions of Rusal. Given the scale of the company's production, support will be conditional: in 2017, Rusal exported about 2.7 million tons of products. The Cabinet of Ministers resorts to this measure of support for the first time.

The Russian government will allocate Rosrezerv to 10 billion rubles. on the purchase and storage of aluminum, said in the disposal of Prime Minister Dmitry Medvedev, signed on November 26. For this amount Rosrezerv will be able to purchase up to 50 thousand tons of aluminum.

The only aluminum producer in Russia is Rusal by Oleg Deripaska, which fell under US sanctions in April. The Department of Foreign Assets Control of the US Treasury listed Mr. Deripaska on the SDN list. Residents of the United States are not allowed to make any transactions with the persons involved in the list, and the listing also overlaps its defendants with access to the American financial system.

In 2017, Rusal exported over 70% of aluminum produced: 2.7 million tons out of 3.7 million tons of manufactured products were sent to foreign markets. Thus, the purchase of Rosrezerv compensates for about 1.35% of the production of Rusal in 2017 and will become insignificant support for the company.

In October, First Deputy Prime Minister, Finance Minister Anton Siluanov said that the cabinet would develop an individual support plan for Rusal, the details of which will not be announced publicly, since this is a “sensitive topic” for the company. Mr. Siluanov noted that the government is working on issues "with the demand for products, access to financial resources and ensuring the payments of these companies." In April, after the introduction of sanctions against Oleg Deripaska, the Minister of Finance claimed that the government was not considering the purchase of aluminum in the state fund to support the company. For six months, the position of officials has changed.

In 2013, Rusal offered the state to purchase about 1 million tons of aluminum in the state fund. The creation of a public warehouse should have led to the emergence of a “tool to support stagnant domestic demand.” But then the federal government considered the measure redundant.

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