The US Treasury gave Deripaska another month

The US Treasury has extended by a month the period during which investors must stop transactions with shares, debt instruments or other investments in the company of Oleg Deripaska. Earlier, the Ministry of Finance ordered that this should happen before May 7, the new deadline is June 6. We are talking about the securities of En +, UC Rusal, the GAZ group, Irkutskenergo and others.

Details

• Last week, En+, through which Deripaska controls UC Rusal and its energy assets, announced that the businessman was ready to cut his stake in the company below 50%. At the same time, the company applied to OFAC (a division of the US Treasury that is responsible for sanctions) with a request to extend the period during which investors must get rid of the securities of the businessman's companies, from May 7 to October 31, or until such time as the US Treasury deems "appropriate" . Otherwise, the company warned, it would be difficult for it to maintain a listing on the London Stock Exchange (LSE).
• On May 1, the LSE issued a warning that it would suspend trading in En+ from the end of the trading day on May 2. It was assumed that after that, all previously concluded transactions with En + receipts would be carried out through Euroclear Bank until the entry into force on May 7 of a complete ban on transactions with the company's securities by the US Treasury Department. The LSE noted that it would continue to monitor the situation. Most likely, after the decision of the US Treasury, the exchange will also extend the period of operations with En + securities.
• This is not the first concession from OFAC. For example, immediately after the announcement of sanctions in early April, the US Department of the Treasury demanded that American citizens and companies stop all transactions with UC Rusal under already concluded agreements until June 5th. This deadline was subsequently extended to October 23, 2018.
• When and how Deripaska will get rid of control in En + is still unknown. It is also unclear whether the US Treasury will consider this circumstance sufficient to lift sanctions on the businessman's main assets.

Irina Malkova