US Treasury Department: Reduction in Deripaska’s share in his company not sufficient to exclude it from sanctions list

"A reduction in the share of ownership [of the company] by a person under sanctions is not necessarily a basis for excluding [the company] from the sanctions list," RBC news agency reports, citing an official US Treasury Department spokesperson.  

According to the source, OFAC (the Office for Foreign Assets Control, a subdivision of the Treasury Department) "conducts a thorough analysis of the facts and circumstances of each request for exclusion [from the sanctions list) and does not discuss publicly about specific outcomes and scenarios."

"The US Treasury does not report on its future actions or permissions [En+ also asked OFAC to extend the period during which US investors can withdraw from the company's shares or bonds expiring on May 7 until October 31, 2018]. At the moment, OFAC cannot offer additional guidance on the structures controlled by Oleg Deripaska, except for press releases, licenses and answers to frequently asked questions," the US Treasury representative said.

The representative once again pointed to the position of OFAC, according to which "the way to reduce the sanctions against Rusal is through Oleg Deripaska's [complete] exit from the [company’s] capital and his refusal of control over the company." Former OFAC advisor Brian O'Toole told RBC that he considers Deripaska's full exit from Rusal to a necessary condition to satisfy the US Treasury.

UC Rusal and its primary owner, Oleg Deripaska, fell under US sanctions on April 6. Previously, the US Treasury said that there would be a possibility to withdraw the restrictions imposed on UC Rusal in the event that Deripaska stepped down from control of the company.

On Friday, it was reported that Deripaska decided to reduce its stake in the capital of En +, the largest shareholder in the aluminum company UC Rusal, and to leave its board of directors.

  US Treasury, Oleg Deripaska, Office for Foreign Assets Control, Rusal company, EN+ Group, sanctions