Deripaska presented the final plan to remove En+ from US sanctions

Oleg Deripaska, who owns 66% of En+ (controls Rusal), will transfer part of his shares to VTB Bank. Such a proposal is contained in the final plan for the withdrawal of En + from the US sanctions, which the company sent to the department of the OFAC Treasury Department responsible for sanctions policy, writes the Financial Times, citing sources familiar with the document.

Details

• According to the publication, as part of the transfer of shares in VTB (now owns 9.6% of En +), Deripaska will reduce his stake in En + below 45%. Thus, as long as the shares are controlled by VTB, the bank will become the majority shareholder, but US citizens specially appointed by En+ will still control the voting rights.
• Once sanctions are lifted, VTB will sell shares on the market to cover En+ loans that Deripaska's company is unable to service due to the same sanctions. According to Reuters , En+ owes $5.2 billion to VTB and Sberbank (VTB's exact amount is unknown).
• In addition, according to the publication, the plan confirms Deripaska's agreement not to legally prevent the appointment of independent directors of En+. At the same time, the businessman’s dividends from his remaining block of shares will be sent to a special escrow account, which will allow you to withdraw money only after Deripaska is removed from the sanctions list.
• Washington has not yet approved the plan - the US authorities may have questions about VTB, which is also under sanctions, the FT notes.
• Quote: “This will be a very successful outcome for the United States. They defeated Deripaska and took away his control of the company,” one of the sources told the newspaper.

Context

• In April, the US imposed economic sanctions against several Russian billionaires and their companies. In particular, against Oleg Deripaska, En+, Rusal, the GAZ group, and others. Both the billionaire and all his companies are on the SDN list: their assets in the United States are blocked, and American citizens are prohibited from doing business with them. Residents of other countries for cooperation with sanctioned companies or individuals may themselves fall under the so-called secondary sanctions.
• The United States admitted that it could lift sanctions on Deripaska's companies if he exits their capital or "relinquishes control." The businessman agreed to reduce his stake in En+ below 50%, and British ex-Minister of Energy Lord Gregory Barker became the new independent head of the board of directors of En+, who is supposed to save En+ and UC Rusal from sanctions.
• The final document largely repeats the points of the “Barker plan” shown by OFAC for the withdrawal of Deripaska's companies from restrictive measures, presented at the end of July.

[whatabout text='If Oleg Deripaska fails to reach an agreement with the US Treasury, then UC Rusal will be forced to stop plants in September-October, told sources RBC earlier. The reason is in contracts with foreign clients - the existing ones expire on October 1, and the company may not sign new ones: the American sanctions imposed on April 6 prohibit any transactions with the structures of the Russian businessman from October 23 for American individuals and legal entities. Since before the sanctions, UC Rusal, the world's number two aluminum producer, exported about 80% of its products, a complete cessation of supplies abroad could affect the global market. Fitch allows for two possible scenarios:

1) If the sanctions remain in place , the aluminum price will rise from the current $2.1 thousand per ton to $3 thousand, and the market will become scarce for a long time. Chinese producers can put additional metal on the market, but at a higher price.

2) If an acceptable solution for sanctions is found , the situation on the market will normalize by 2019.'/]

Artem Gubenko