US Treasury: Deripaska must reduce his stake in UC Rusal

US Treasury: Deripaska must reduce his stake in UC Rusal
US Treasury Secretary Stephen Mnuchin

Head of the US Treasury Stephen Mnuchin has once again stressed that the financial department did not aim to ruin the Russian aluminum company by imposing sanctions. But its main shareholder should reduce his share in its assets.

In an interview with Bloomberg, US Treasury Secretary Stephen Mnuchin noted that Washington had no intention to ruin the Russian aluminum company or force it out of business by imposing sanctions on it, RBC reports.

“The first aspect of our actions is that Oleg Deripaska, who owns 48% of the securities, refuses to control the company,” Mnuchin stressed.

Earlier, on April 23, the US financial department allowed the cancellation of restrictions on the company. The main condition for this declared by the Ministry of Finance was Deripaska's refusal to control UC Rusal and his withdrawal from its capital. In response, on April 27, Oleg Deripaska agreed to reduce his stake in the assets of En+, which is the largest shareholder of UC Rusal, below 50% from the current 71.4%. Responding to this decision, the US Treasury said that such a move by Deripaska “does not necessarily constitute grounds for excluding the company from the sanctions list.”

To recall, Deripaska, Rusal, and En+ came under US sanctions on April 6. The sale of these companies’ securities by investors on the first trading day after the introduction of restrictions crashed the Russian stock market by 8-11%. In Hong Kong, shares of the Russian aluminum company collapsed by more than 50% on April 9, and trading in En+ securities in London was stopped. On the Moscow stock, Rusal’s shares fell by 20%, and those of En+ by 16%, after which the Russian aluminum company warned of the risk of technical defaults on debt obligations.

Tags: Oligarchs
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