Support The Moscow Times!

Sanctions-hit GAZ Wants Government Bail-Out – Kommersant

Oleg Deripaska Mikhail Metsel / TASS

Oleg Deripaska’s van maker GAZ is asking the government for almost 30 billion rubles ($468 million) in support because it claims U.S. sanctions could slash production by almost 40 percent in the second half of the year, the Kommersant business daily reported on Thursday.

Kommersant cited a March 29 letter from GAZ Deputy General Director Vadim Sorokin to Deputy Prime Minister Dmitry Kozak of March 29 warning of the risk of default and negative social and economic consequences.

The letter said that because of the effects of the sanctions, GAZ had been forced to spend all its own funds, including its profit, on raising working capital, according to Kommersant.

The U.S. lifted sanctions on Deripaska’s main assets — aluminum giant Rusal and its parent En+ in January after he dropped his stakes in them. Deripaska himself remains under sanctions.

The U.S. Treasury has given investors until July to divest from GAZ, meaning Deripaska could lower his stake and allow the company to be removed from the sanctions list.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

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 you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more