En+ and UC Rusal may be excluded from US sanction list

En+ and UC Rusal may be excluded from US sanction list
Oleg Deripaska

The companies agreed to change the ownership structure and corporate governance.

On Wednesday, December 19, it became known that the US Department of the Treasury notified Congress of the decision to cease the sanctions imposed on En+, UC Rusal and EuroSibEnergo. The ministry explained this decision by saying that the companies agreed to change the ownership structure and corporate governance.

According to The Bell, half of the En+ board of directors will be made up of citizens of the United States or the UK, and current head of the Rusal board of directors Matthias Warnig will resign.

Deripaska’s share at En+ will be reduced from approximately 70% to 44.95% without the right to increase it. The new owner of the securities will be VTB, part of the shares will be sent to charity, RBC indicates. Part of the package will be sold to the Swiss company Glencore (it will exchange Rusal shares for a stake in En+). The businessman does not receive dividends from his shares - they are transferred to a blocked account.

Also, other shareholders associated with Deripaska will lose their voting rights. He will not have a direct stake in EuroSibEnergo. Also, the share of the businessman (0.01%), which he now owns in UC Rusal, cannot be increased.

The billionaire will remain under sanctions. All of his assets, in which he owns 50% of the shares, will remain blocked, foreigners who lead the business with him will continue to be subject to secondary sanctions.

Deripaska’s assets came under US sanctions in the spring of 2018 after the Kremlin list was published. Those included in it were accused of being partners of the Russian state and its foreign policy. The US market was closed for Rusal and En+, and contacts with the European and Asian markets became more complicated.

In May, the US Treasury made the lifting of sanctions on Rusal, if the En+ group of Oleg Deripaska sells its 48% stake. Deripaska left the En+ board of directors, and then the board of directors of UC Rusal.

Also, the US Department of the Treasury added 18 people and four companies from Russia connected with the GRU and with businessman Yevgeny Prigozhin to the sanctions lists. Among them, there are Alexander Mishkin (Petrov) and Anatoly Chepiga (Ruslan Boshirov), whom the UK suspects in the poisoning of Sergei Skripal, as well as the Federal News Agency.

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