Deripaska to cut EN+ stake to below 50%, leave company board

Oleg Deripaska

Oleg Deripaska

The source familiar with the matter said Rusal was in close contact with USA authorities.

Earlier it was reported that Deripaska has made a decision to reduce the share in the holding company En+, which owns 40% of RUSAL, is below 50%.

Russia's Rusal will be forced to quit the global aluminium market and focus on domestic consumers if the United States does not lift sanctions once an independent board is in place, a source familiar with the matter said.

In Washington, a U.S. Treasury spokesperson said changes in ownership at Rusal do not guarantee the end of sanctions.

"Rusal is in touch with US authorities and hopes the measures will be enough for them to be removed from the sanctions list", one source told Reuters.

Deripaska's company En+ now owns 48 percent of Rusal. The updated blacklist included major Russian aluminum producer RUSAL which is the world's second-largest aluminum producer and its owner Oleg Deripaska.

The company also approached the US Treasury with the request to extend transactions with the company until October 31.

Deripaska also agreed with the chairman's proposal that he resign from the board and consent to the appointment of new directors to give the board an independent majority, it said.

Without the extension, En+'s ability to maintain its listing in London will be materially impacted, it said.

The U.S. government imposed sanctions on Deripaska, En+, and Rusal along with dozens of other Russian business and political elites earlier this month, prompting a collapse in Russia's stock market and plunge in the ruble.

The Treasury Department has imposed sanctions on seven Russian oligarchs and 12 firms they own or control, including Hong Kong-listed Rusal, saying they were profiting from a Russian state engaged in "malign activities" around the world.

"Up to 2 million tonnes will be processed internally and meet the needs of the military-industrial complex", the source said.

Aluminium prices in London fell on the news of the potential board reshuffle but then recovered on fears exports could remain disrupted.

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