The share price of Russian oligarch Oleg Deripaska’s company UC Rusal dropped to a historic low on the Hong Kong Stock Exchange due to the US’s promises to announce new anti-Russian sanctions.
On Monday, the company’s share price dropped almost 30% compared to the previous close. At 10:51 Moscow time, the unit price was 1.43 Hong Kong dollars (0.18 USD). Rusal’s previous all-time low was 2.09 Hong Kong dollars on June 12, 2016.
The day before, the US Treasury Department announced new sanctions against Russia due to its support of Syrian President Bashar al-Assad, whom the US holds responsible for organizing the chemical attacks in the republic. The sanctions affect companies that have made shipments to the Syrian government.
Rusal and its primary owner Oleg Deripaska were placed under US sanctions on April 5. Rusal’s share price subsequently plummeted, and it announced the possibility of a technical default on its debt obligations. Before the sanctions, Rusal traded at 4.64 Hong Kong dollars.
79% of Rusal’s revenue comes from selling aluminum abroad, with roughly 14% of its aluminum going to the US.