Russian oligarch retreats as sanctions slam his companies

A Russian oligarch is loosening his control of two companies that have been slammed by US sanctions.Oleg Derip...

Posted: Apr 27, 2018 11:02 PM
Updated: Apr 27, 2018 11:02 PM

A Russian oligarch is loosening his control of two companies that have been slammed by US sanctions.

Oleg Deripaska has agreed to reduce his stake in EN+ to below 50%, the company said in a regulatory filing in London on Friday. He will also resign from the sanctioned firm's board.

EN+ is the largest shareholder in aluminum producer Rusal. At the end of December, Deripaska owned more than 76% of EN+, according to Rusal's annual report.

Deripaska was hit earlier this month with tough sanctions on Russian oligarchs that target him and his businesses.

EN+ and Rusal are part of a tangled web of corporate entities under his control. EN+, which went public last year in London, has a 48.1% stake in Rusal.

The US Treasury Department said Monday it would consider easing the sanctions on Rusal if Deripaska divests.

Treasury Secretary Steven Mnuchin also said the United States would extend the deadline for companies that do business with Rusal to undo those ties. Companies have until October 23 to untangle themselves.

Under the sanctions, Americans are prohibited from doing business with the companies, and people of other nationalities could face sanctions themselves if they facilitate transactions for the firms.

Related: US sanctions are killing this oligarch's business

Rusal produces 7% of the world's aluminum, according to the US Treasury. International buyers, business partners and commodity exchanges have been scrambling to sever ties with the company.

The imposition of sanctions caused aluminum prices to spike dramatically, and sent Rusal's shares crashing 57% in Hong Kong. EN+ has lost 50% of its value.

Deripaska, a physicist by training, has earned a reputation as a survivor.

He emerged from the chaotic scramble for assets following the collapse of the Soviet Union with a massive fortune, which Forbes estimated at $28 billion in 2008. Soon after, a sharp decline in commodities prices during the financial crisis caused his net worth to plummet.

He recovered his footing, and billions of his fortune, in the years that followed.

Related: Aluminum stocks fall as US considers easing sanctions on Russian company

Deripaska has a longstanding relationship with Russian President Vladimir Putin. He is also a former business associate of Trump campaign chairman Paul Manafort, who has been indicted as part of an investigation by US special counsel Robert Mueller. Manafort has pleaded not guilty to all charges against him.

In announcing the new sanctions, the US Treasury said that Deripaska had "said that he does not separate himself from the Russian state."

Deripaska has described the US sanctions as "groundless, ridiculous and absurd."

Terre Haute
Partly Cloudy
81° wxIcon
Hi: 83° Lo: 61°
Feels Like: 82°
Robinson
Partly Cloudy
83° wxIcon
Hi: 84° Lo: 60°
Feels Like: 85°
Indianapolis
Partly Cloudy
79° wxIcon
Hi: 86° Lo: 61°
Feels Like: 80°
Rockville
Partly Cloudy
76° wxIcon
Hi: 82° Lo: 60°
Feels Like: 76°
Casey
Partly Cloudy
79° wxIcon
Hi: 81° Lo: 62°
Feels Like: 81°
Brazil
Partly Cloudy
81° wxIcon
Hi: 83° Lo: 61°
Feels Like: 82°
Marshall
Partly Cloudy
81° wxIcon
Hi: 81° Lo: 59°
Feels Like: 82°
Sunny and warmer to start!
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events

 

In Case You Missed It

${article.thumbnail.title}

Trace Adkins: The Way I Wanna Go Tour

${article.thumbnail.title}

SCAM ALERT: Avoid phony Amazon calls

${article.thumbnail.title}

SCAM ALERT: Social media influencer ruse

${article.thumbnail.title}

SCAM ALERT: Beware of knock-off car seats

Image

Police make arrests in deadly shooting case

${article.thumbnail.title}

SCAM ALERT: Fake change-of-address websites

${article.thumbnail.title}

SCAM ALERT: Fraudsters claim Apple iCloud breach to steal your info

${article.thumbnail.title}

SCAM ALERT: Schemes target military families

${article.thumbnail.title}

SCAM ALERT: Avoid Zoom phishing

Image

SCAM ALERT: Rental car shortage leads to phony deals

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Cases: 1389892

Reported Deaths: 25606
CountyCasesDeaths
Cook55655610470
DuPage924461322
Will769851035
Lake683971019
Kane59475808
Winnebago34146508
Madison30990526
McHenry29197295
St. Clair28377519
Peoria23461343
Champaign21118155
Sangamon19112240
McLean18559188
Tazewell17234305
Rock Island15248329
Kankakee14574216
Kendall1329099
LaSalle12791250
Macon11000211
DeKalb10132121
Vermilion10039143
Adams8727127
Williamson7619134
Whiteside7199174
Boone683778
Ogle621983
Grundy598878
Clinton578991
Coles5774100
Knox5649155
Jackson510265
Henry508170
Livingston490291
Woodford484682
Stephenson482985
Macoupin478388
Effingham476972
Franklin454378
Marion4516117
Jefferson4425122
Monroe439094
Lee419354
Randolph416587
Fulton405459
Logan398864
Morgan393782
Christian383975
Montgomery379674
Bureau378484
Fayette322855
Perry320360
Iroquois314668
McDonough291651
Jersey271752
Douglas260836
Saline260657
Lawrence241027
Shelby232838
Union228341
Crawford214525
Bond208724
Cass203727
Ford189050
Warren184749
Clark184033
Jo Daviess182624
Pike182153
Wayne181253
Hancock180931
Carroll178537
Edgar177240
Richland176940
White170626
Washington164925
Moultrie163128
De Witt157229
Mason154245
Piatt152414
Clay149943
Mercer149534
Johnson148116
Greene145234
Massac136040
Wabash135712
Cumberland130319
Menard125012
Jasper116718
Marshall108119
Hamilton84216
Schuyler7827
Brown7326
Pulaski7007
Stark64824
Edwards57712
Calhoun5312
Henderson52914
Scott4901
Putnam4863
Alexander47411
Gallatin4704
Hardin39112
Pope3304
Unassigned502433
Out of IL360

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Cases: 752108

Reported Deaths: 13816
CountyCasesDeaths
Marion1033831790
Lake558431013
Allen41736693
St. Joseph37007565
Hamilton36617417
Elkhart29425461
Tippecanoe22938228
Vanderburgh22565400
Porter19369327
Johnson18486389
Hendricks17696317
Clark13233195
Madison13176344
Vigo12631253
LaPorte12429221
Monroe12226176
Delaware10970198
Howard10349224
Kosciusko9643121
Hancock8578147
Bartholomew8174157
Warrick7864156
Floyd7815180
Grant7248179
Wayne7164201
Boone6979103
Morgan6768141
Dubois6224118
Marshall6214116
Cass6024110
Henry5903110
Dearborn589878
Noble581688
Jackson509476
Shelby502396
Lawrence4753122
Gibson445595
Clinton443555
Harrison441775
DeKalb440385
Montgomery439890
Whitley406744
Huntington403381
Steuben400859
Miami395769
Jasper389155
Knox377691
Putnam373461
Wabash362383
Ripley347370
Adams345555
Jefferson336186
White332753
Daviess3035100
Wells295481
Decatur289892
Greene286885
Fayette284864
Posey274335
LaGrange273272
Scott270356
Clay267148
Washington246336
Randolph245183
Jennings235349
Spencer234531
Starke228159
Fountain222048
Sullivan214843
Owen212358
Fulton204043
Jay201032
Carroll193820
Orange188255
Perry187237
Rush175926
Vermillion175344
Franklin170435
Tipton166646
Parke149616
Pike138334
Blackford136232
Pulaski120847
Newton114936
Brown104443
Benton102614
Crawford102516
Martin91815
Warren84115
Switzerland8158
Union72810
Ohio57911
Unassigned0424