December 19, 2018 / 6:49 PM / 7 months ago

U.S. to lift sanctions on Oleg Deripaska's Rusal and En+ in 30 days

Russian aluminium tycoon Oleg Deripaska and Industry and Trade Minister Denis Manturov arrive for the talks of Russian President Vladimir Putin with South Korean President Moon Jae-in at the Kremlin in Moscow, Russia June 22, 2018. REUTERS/Sergei Karpukhin

(Reuters) - The U.S. Treasury will lift sanctions on aluminum giant Rusal (0486.HK), its parent company En+ (ENPLq.L), and another firm tied to Russian businessman Oleg Deripaska, it said in a statement on Wednesday.

In April, the U.S. Treasury imposed sanctions on Deripaska, Rusal, En+ and other companies in which he owns stakes, citing “malign activities” by Russia, prompting turmoil in global aluminum markets.

After lobbying by European governments, Washington postponed enforcement of the sanctions and started talks with Deripaska’s team on removing Rusal and En+ from the blacklist if he ceded control in Rusal.

Deripaska will remain under sanctions imposed on him in April, the Treasury said. However the three Deripaska companies - Rusal, En+ and electricity firm EuroSibEnergo - have agreed to restructuring changes including reducing Deripaska’s stake.

“These companies have committed to significantly diminish Deripaska’s ownership and sever his control,” the Treasury said. As part of the deal, Deripaska’s stake in En+ will fall to 44.95 percent from about 70 percent.

Aluminum prices CMAL3 fell to $1,911 a tonne after the U.S. Treasury statement, the lowest since August last year. The Treasury’s statement arrived after the Russian rouble and equities markets had closed.

Rusal, the world’s second largest aluminum producer after China’s Hongqiao (1378.HK), EN+ and the London Metals Exchange were not immediately available for comment.

Reporting by Nathan Layne and Polina Devitt; Additional reporting by Pratima Desai and Eric Onstad; Editing by Tom Brown and Andrew Osborn

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