The US Treasury Department gives investors another month to liquidate assets in sanctioned Russian companies
The US Treasury Department extended the period during which US investors should get rid of shares of Russian companies En+, Rusal and GAZ Group, which are under Washington's sanctions. Investors had until May 7 to do this but the deadline was extended to June 6. They should also wind down contracts with companies on the sanctions list.
On May 1, a new document extended permission to get rid of holdings in AgroHolding Kuban, Basic Element Limited, B-Finance Ltd., JSC EuroSibEnergo, Gazprom Burenie, Ladoga Menedzhment, NPV Engineering Open Joint Stock Company, and Renova Group. Sanctions were imposed against these companies as a result of the Russian Federation’s actions in Ukraine.
April 6, the United States imposed sanctions against a number of Russian businessmen, officials and companies from the so-called "Kremlin Report". Rusal and the En+ Group Plc of the Russian oligarch, Oleg Deripaska, were placed on the sanctions list. On April 23, the US Treasury Department allowed sanctions to be eased against Rusal if Deripaska divested himself of controlling shares.
En+ is the controlling shareholder of Rusal. The company announced that Deripaska agreed to leave the Board of Directors and is ready to reduce his equities to below 50 percent. However, the US Treasury then said that such actions cannot justify sanctions relief for the company.