Deripaska Steps Down as Director of Russian Aluminum Giant Rusal

  • Deripaska Steps Down as Director of Russian Aluminum Giant Rusal

Deripaska Steps Down as Director of Russian Aluminum Giant Rusal

Prices for aluminum surged when Rusal was sanctioned, then fell last week after EN+ Group Plc., the holding company through which Deripaska has maintained his interest in Rusal, announced the billionaire is stepping down from the board of EN+ and intends to leave Rusal's board.

Deripaska has already said he agreed in principal to reduce his influence in another company which controls Rusal.

"But the earlier commitment for Deripaska to relinquish control in parent EN+ is still pending execution".

Russia's largest aluminium producer, United Company Rusal Plc, said on Thursday its chief executive and seven board members have quit, and warned it may have problems servicing its debt due to the impact of USA sanctions. He also resigned from the board of EN+. London-listed energy and resource conglomerate EN+ owns around 48.1 per cent of Rusal. This is stated in the company's message posted on the Hong Kong Stock Exchange.

Two executive directors of the company, Vladislav Soloviev and Siegfried Wolf, as well as non-executive directors Maxim Sokov, Dmitry Afanasiev, Gulzhan Moldazhanova, Olga Mashkovskaya and Ekaterina Nikitina, also announced their resignations yesterday.

Rusal shares closed the morning session at HK$1.96, up 3.7 per cent.

"The business with newly sanctioned institutions represents less than 2 per cent of our assets so of course it will affect us to a certain extent but we still have to see what's going to happen with them as there's some discussion that they could be lifted for Rusal and some other companies".

Rusal is the parent company of Aughinish Alumina in Co Limerick.

Ukraine has published an updated sanctions lists against Russian Federation.

The US Department of the Treasury had previously published an explanation, from which it followed that the loss of control over En+ and UC Rusal could lead to the removal of sanctions from the company. The new set of sanctions would target persons doing business in the Crimea and supplying weapons to Russian Federation.