Support The Moscow Times!

Investors Given Extra Month to Divest of Russia’s Sanctions-hit Rusal

Ilya Naymushin / Reuters

The U.S. Treasury on Tuesday gave investors an additional month to divest or transfer their holdings in sanctions targets United Company Rusal Plc, En+ Group Plc and GAZ Group.

Washington last month imposed sanctions on Russian billionaire Oleg Deripaska and several companies in which he is a large shareholder, including Rusal, En+ and GAZ, in response to what the United States called Russia's "malign activities."

Deripaska's En+ Group holds his 48 percent stake in Rusal, Russia's largest aluminum producer, while his Russian Machines conglomerate owns 61 percent of vehicle maker GAZ.

The Treasury said in a statement it extended the deadline to divest financial holdings in the companies to June 6 from May 7.

The extension on investments followed a U.S. Treasury announcement last week that it would give American companies until Oct. 23 instead of June 5 to wind down business with Rusal.

Rusal will overhaul its board and management in hopes of persuading the United States to lift the sanctions, which have led customers to stop buying its aluminum, sources close to the company told Reuters last month.

Deripaska has also agreed in principle to reduce his stake in En+ after the United States said it could remove Rusal from the sanctions list if he ceded control.

A representative for the U.S. Treasury said that did not guarantee the end of sanctions for the company.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more