The USA has weakened the hammer on Oleg Deripaska's neck

The US Treasury gave US investors in En +, Rusal and the GAZ Group a delay until August.
01.06.2018
Kommersant
Origin source
The US Treasury again extended the deadline before which US residents are ordered to withdraw from the debt instruments and shares of the sanctioning companies of Oleg Deripaska, including En + Group and Rusal. In Washington, the businessman is still waiting for assignment of control over assets, and in En + they say that the plan, which will remove sanctions from the group and "Rusal", will be presented to US authorities in mid-summer.

The Office of Foreign Assets Control (OFAC) of the US Treasury Department has issued a General License No. 13B, which extends the period for the US residents to obligatory leave the debt and capital of En + Group, Rusal and GAZ, controlled by Oleg Deripaska, until August 5 (originally May 7, 1 May the deadline was extended until 6 June). The businessman and his key assets were included in the SDN list on April 6 (along with Viktor Vekselberg, Suleiman Kerimov, and others), but at the end of April amid turbulence in the aluminum market, the US Treasury said it could lift sanctions from Rusal, if Oleg Deripaska gives control in the company (the same condition was publicly delivered and for the GAZ group).

This was followed by more and more new licenses that extended the deadlines in which US residents were ordered to curtail contracts with the company's sanctions companies (now before October 23) and withdraw from their debt instruments and shares. In particular, the demand for withdrawal from the shares of Rusal should create problems for US citizen Leonard Blavatnik, who together with Viktor Vekselberg and a number of junior partners through Sual Partners owns 26.5% of Rusal. But these licenses are also important for counterparties of Mr. Deripaska's companies from other countries, as they may fall under "secondary" sanctions.

Oleg Deripaska in April agreed to reduce his stake in En + below 50% (now holds about 66%), and the group in turn controls "Rusal" by agreement of shareholders, although owns 48.13%. Thus, sanctions should be lifted from Rusal, and all of this, including plans for a radical change in the boards of directors of companies, is part of the Barker Plan, named after Lord Gregory Barker, the Independent Chairman of the En + Board of Directors. Mister Barker told Reuters on May 31 that he asked the US Treasury to extend the license, which gives the right to carry out transactions with the shares of the company, until September. "We are requesting an extension of the general license, which will give us time to collect the missing elements, so that by mid-summer we could present the final proposal to the US government," Mr. Barker said. A Bloomberg source on May 30 said that the US Treasury had made it clear that Oleg Deripaska should reserve a stake in En + of about 40%.

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