Execs leave in droves as Rusal struggles to avoid US sanctions | Business| Economy and finance news from a German perspective | DW | 24.05.2018
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Business

Execs leave in droves as Rusal struggles to avoid US sanctions

Russian aluminum giant Rusal has announced its chief executive and half of its board of directors have resigned to ensure the company can avoid US sanctions. Shipments to some customers have resumed.

Russian aluminum producer Rusal said Thursday that Chief Executive Alexandra Bouriko had resigned, as had half of the company's board. Two of the directors had management positions while five were non-independent members of the board who had been appointed by the firm's founder and oligarch Oleg Deripaska.

Faced with turmoil on the market for a key industrial product, the US government had indicated that Rusal might avoid being caught up in Washington's sanctions by cutting ties with Deripaska, one of the so-called Specially Designated Nationals targeted by US sanctions.

Deripaska had earlier announced he would cut management ties with Rusal and his holding company En+ and reduce his stakes to under 50 percent.

Breathing space

According to Reuters, the US Treasury department had moved its deadline for US consumers to wind down business with Rusal to October 23 from June 5 and said it would consider lifting sanctions altogether if Rusal's major shareholder, Oleg Deripaska, ceded control of the company.

The Russian company has meanwhile resumed shipping aluminum to some customers. Parties, who had existing contracts, were starting to take deliveries again, Reuters reported Thursday.

Uncertainty about aluminum supplies has supported prices, which at around $2,250 per ton (€1,924) are up more than 10 percent since the beginning of April.

hg/mm (AFP, Reuters)

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