Washington gave Oleg Deripaska some more time

The US Treasury extended the deadline for allowing US companies to work with the toxic Russian aluminum oligarch until November 12 of this year.
24.09.2018
Kommersant
Origin source
The US Treasury again extended the deadline before which American companies must interrupt business operations and exit the debt and capital of En + and RusAl Oleg Deripaska - now before November 12. During this time, officials will consider the data submitted by companies "about significant changes in corporate governance." En + has already announced progress in negotiations with the ministry. According to analysts, under the pressure of the American industrial lobby, the term will be extended further, as evidenced by the growth in the sales of Russian aluminum to Swiss traders reselling metal in the US.

The Office of Foreign Assets Control (OFAC) of the US Treasury extended the validity of licenses authorizing operations with En + Group and Oleg Rusal Oleg Deripaska and presence in the capital and debt of these companies until November 12. This September 21 reported OFAC. "En + and" Rusal "notified the US government of significant changes in corporate governance, which could result in significant changes in the control structure," the ministry said. "In order to ensure sufficient time for consideration, we extend the licenses until November 12".

OFAC on April 6 included Oleg Deripaska and assets under his control (Basel, En +, RusAl, GAZ Group and others) in the SDN list banning business with US residents and access to the financial system of the country. But due to changes in the world, including American, aluminum market caused by this measure, the US authorities were forced to repeatedly extend the period during which US companies must interrupt business relations with the sanctions companies and withdraw from their debt and capital. Initially, it was limited to June 5 and May 7, respectively, the last extension was valid until October 23. Now on October 23, only the validity of licenses for the GAZ Group expires, while for En +, Rusal and Eurosibenergo they are extended.

The US Treasury has indicated that it is ready to lift sanctions in exchange for reducing the share of Oleg Deripaska in companies below the control. Now the businessman controls 48.13% of "Rusal" through En +, in which he owns 66%. On April 27, En + announced the adoption of the "Barker Plan" (named after Lord Gregory Barker, the Independent Chairman of En + Board of Directors), which implies a gradual decline in this share. On Saturday, Bloomberg, referring to En +, said that the company had made "significant progress" in negotiations with the US Treasury without revealing the details. In En +, the extension of the license and Bloomberg's "Kommersant" did not comment.

According to Maxim Khudalov of ACRA, the deferrals to Oleg Deripaska's structures will continue to be provided. He notes that since June, there has been a sharp increase in the supply of aluminum to Switzerland, where traders are concentrated. Therefore, Maxim Khudalov says, either Glencore began to work more actively, or small traders, reselling Russian aluminum to the American market, joined in. Demand from the US industry is growing, and given the short pay-out period for contracts, when it is technically impossible to meet until October 23 and suffer serious penalties for violation of sanctions, it is obvious that the US industrial lobby is putting pressure on OFAC to preserve the opportunity to interact with Rusal ". "Pressure on Oleg Deripaska will continue, but the benefits will continue to be extended so as not to harm the American industry," Maxim Khudalov predicted.

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