Page 23 - bne_newspaper_May_04_2018

C
M Y CM MY CY CMY K
Eastern Europe
May 4, 2018
The value of Rusal’s equity has been almost destroyed by the sanctions, going into free fall as US investors, or those with exposure to the US, are banned from owning the shares. The stock lost more than half its value in a week.
But the boomerang effect of taking out such a largely player on the international commodities market meant the pain quickly rebounded on western investors and manufacturers. That led the USTD to an embarrassing climbdown this week, where the pain of sanctions was eased.
The period in which investors have to sell their Rusal securities was extended from one to five months and the USTD said sanctions may be lifted completely if Deripaska sold his shares.
Initially the oligarch was defiant, saying he would not sell on April 27, but in an apparent change of
www.intellinews.com I Page 23
heart (or more likely Kremlin pressure to bring the fracas to an end) Deripaska announced late on the same day that he will give up control of Rusal by reducing his majority stake in En+, its London- listed parent company, cutting his ownership in the holding from 70% to under 50% and resigning from the board.
En+ will also relinquish its rights to nominate the chief executive of Rusal and manage the business, the Financial Times reportedciting sources close to the deal.
The ball is now in the USTD’s court to see if it accepts the proposed changes as sufficient to remove the worst of the sanctions on Deripaska and Rusal, which accounts for 8% of the world’s aluminium supply and is the world’s second largest supplier of the metal.
175x144- OL.pdf
1 10/04/2018
11:13 AM