The United States extended the deadline for the expiration of which, in accordance with the sanctions, the interaction with Rusal should be terminated, until October 23 - at this time the US Ministry of Finance will consider the application of Rusal for the deletion from the sanctions list. Also, explained the Ministry of Finance, "Rusal" may be withdrawn from the sanctions, if control over it will no longer belong to Oleg Deripaska.
The Office of Foreign Assets Control (OFAC) of the US Treasury issued a decree extending the period by which US citizens and companies should cease their relationship with Rusal and its structures. This is done in order to "mitigate the impact on the parties affected by the inclusion in the list of Oleg Deripaska," the Ministry of Finance said in a statement.
Rusal along with other structures of its co-owner Oleg Deripaska fell on April 6 under a fundamentally new expansion of US sanctions that affected a large private Russian business (see "Kommersant" on April 7). The inclusion in the SDN list almost completely prohibits American individuals and companies from interacting with its participants - from purchases to lending. "Rusal" turned out to be, perhaps, the most vivid figure of this list due to its weight in the world aluminum market and the impact on the economy of enterprises of other countries.
As it follows from the OFAC order, all interactions with "Rusal" or directly or indirectly controlled by it (share over 50%) by persons who are prohibited from being sanctioned should be stopped before noon on October 23. The sanctions imposed on April 6 limited the term for cooperation on contracts already concluded on June 5, with exports being banned from the US immediately, but now exports to Rusal and its subsidiaries for companies and US citizens are also allowed until October 23.
Separately, it is noted that deliveries of goods from third countries by non-residents of the United States to companies and individuals on the SDN list on April 6 are not subject to sanctions - this, at first glance, refers primarily to the supply of raw materials for Rusal from Rio Tinto and Glencore (both companies previously announced force majeure for transactions), as well as the supply of Volkswagen Group parts for the GAZ Group. Funds frozen to date, will remain frozen, but can be used to maintain interaction and its completion. This permission does not apply to transactions with the debt or shares of these companies, specified in the document: they can only be held until May 7.
US sanctions have affected Rusal because of its connection with Oleg Deripaska, the words of its head Stephen Mnuchin are quoted in the message of the Ministry of Finance, but the US government does not try to hurt the interests of workers dependent on Rusal and its structures.
Mr. Mnuchin also said that "Rusal" filed a petition to exclude him from the list. "Taking into account the impact on our partners and allies, we issue permission to Rusal for the extension of interaction with it and its curtailment until we consider his application," the minister explained.
As explained in the explanations to the issued document, the sanctions from "Rusal" and the companies controlled by him can be lifted if Mr. Deripaska leaves his capital.
On a series of reports facilitating the sanctions regime for Rusal, the shares of the aluminum company on the Moscow stock exchange grew by 12.4%, to 25.8 rubles. for a paper, the capitalization amounted to 395 billion rubles. ($ 6.4 billion).
In En + Group, Oleg Deripaska (owns 48.13% of Rusal and controls the company by agreement of shareholders) and Rusal quickly do not comment on the situation.
The Office of Foreign Assets Control (OFAC) of the US Treasury issued a decree extending the period by which US citizens and companies should cease their relationship with Rusal and its structures. This is done in order to "mitigate the impact on the parties affected by the inclusion in the list of Oleg Deripaska," the Ministry of Finance said in a statement.
Rusal along with other structures of its co-owner Oleg Deripaska fell on April 6 under a fundamentally new expansion of US sanctions that affected a large private Russian business (see "Kommersant" on April 7). The inclusion in the SDN list almost completely prohibits American individuals and companies from interacting with its participants - from purchases to lending. "Rusal" turned out to be, perhaps, the most vivid figure of this list due to its weight in the world aluminum market and the impact on the economy of enterprises of other countries.
As it follows from the OFAC order, all interactions with "Rusal" or directly or indirectly controlled by it (share over 50%) by persons who are prohibited from being sanctioned should be stopped before noon on October 23. The sanctions imposed on April 6 limited the term for cooperation on contracts already concluded on June 5, with exports being banned from the US immediately, but now exports to Rusal and its subsidiaries for companies and US citizens are also allowed until October 23.
Separately, it is noted that deliveries of goods from third countries by non-residents of the United States to companies and individuals on the SDN list on April 6 are not subject to sanctions - this, at first glance, refers primarily to the supply of raw materials for Rusal from Rio Tinto and Glencore (both companies previously announced force majeure for transactions), as well as the supply of Volkswagen Group parts for the GAZ Group. Funds frozen to date, will remain frozen, but can be used to maintain interaction and its completion. This permission does not apply to transactions with the debt or shares of these companies, specified in the document: they can only be held until May 7.
US sanctions have affected Rusal because of its connection with Oleg Deripaska, the words of its head Stephen Mnuchin are quoted in the message of the Ministry of Finance, but the US government does not try to hurt the interests of workers dependent on Rusal and its structures.
Mr. Mnuchin also said that "Rusal" filed a petition to exclude him from the list. "Taking into account the impact on our partners and allies, we issue permission to Rusal for the extension of interaction with it and its curtailment until we consider his application," the minister explained.
As explained in the explanations to the issued document, the sanctions from "Rusal" and the companies controlled by him can be lifted if Mr. Deripaska leaves his capital.
On a series of reports facilitating the sanctions regime for Rusal, the shares of the aluminum company on the Moscow stock exchange grew by 12.4%, to 25.8 rubles. for a paper, the capitalization amounted to 395 billion rubles. ($ 6.4 billion).
In En + Group, Oleg Deripaska (owns 48.13% of Rusal and controls the company by agreement of shareholders) and Rusal quickly do not comment on the situation.
Officials
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