US Treasury gives companies of Russian tycoon Deripaska extra grace period
The Office of Foreign Assets Control of the US Treasury Department has once again postponed the deadline by which US investors have to dispose of EN+ and UC Rusal shares and bonds, the department announced on its official website.
“EN+ and RUSAL have approached the U.S. Government about substantial corporate governance changes that could potentially result in significant changes in control. To allow sufficient time for review, we are extending these licenses until November 12,” the report states.
The license which allows Rusal’s foreign suppliers and buyers to continue to fulfill contracts without the risk of secondary sanctions has also been extended until November 12, a date which is after interim Congress elections.
On September 14, the US Treasury Department clarified what the key term “maintenance” means in the licenses for Rusal. The clarification effectively alleviated the sanctions. Rusal can supply products to its former clients, even if they have no contract signed before April 6 (the date the sanctions were introduced), provided they had contracts in the past. The department also gave the go ahead for the signing of provisional contracts with Rusal for the period after the current licenses expire.
This is not the first time that the US government has extended the deadline by which US investors have to dispose of securities relating to Oleg Deripaska’s companies – earlier the deadline was extended until October 23.
In April, Washington placed sanctions on the Russian oligarch Oleg Deripaska, and consequently on the companies he controls, including EN+ and Rusal. The US Treasury Department later said that the sanctions may be lifted if Deripaska hands over control of the companies. The businessman has agreed to reduce his share in EN+ to below 50% and to leave the company’s board of directors.