Top management of Russian aluminum giant Rusal tenders resignation

Posted May 25, 2018

Rusal's chief executive Alexandra Bouriko and seven directors resigned on Thursday as Rusal began its efforts to distance itself from the oligarch.

The United States on May 22 gave US customers of Russian van manufacturer GAZ more time to wind down business with the company in the latest softening of sanctions against GAZ owner Oleg Deripaska.

The United States announced sanctions on Rusal on April 6, preventing customers with US exposure from continuing to buy Rusal's metal and sending aluminium prices to their highest in nearly seven years amid fears of a supply shortage.

This month the US Treasury extended the deadline for third parties to sever their links with Rusal from June to October, granting the company some breathing space.

More news: NFL Players Who Don't Stand For Anthem 'Shouldn't Be In The Country'

Whilst further evaluation is being carried out by the Company to assess the impact of the OFAC Sanctions on the Group, the Company reiterates that its current assessment is that it is still highly likely that the impact may be materially adverse to the business and prospects of the Group.

On April 23, the US Treasury said it would consider lifting sanctions on Rusal if Deripaska ceded control, while extending the deadline for companies to exit dealings with Rusal by nearly five months, to October 23 this year.

Rusal owns an alumina plant employing 450 people in Limerick, Ireland, which supplies 30% of the European alumina market.

Mr Deripaska, who is himself the subject of United States sanctions, had already announced his intention not to stand for re-election to the board.

More news: Putin: Russian warships will remain off Syria

Two of the directors have management positions while the other five were non-independent members of the board who had been appointed by Deripaska.

Rusal owner Oleg Deripaska has famously been linked in the past to president of Russia, Vladimir Putin. Rusal declined to comment. Rusal shares rose as much as 7.4pc in Hong Kong on the news.

The bank is under the control of the Russian central bank and has been earmarked to provide finance to sanctioned Russian firms.

Russian authorities have approved a loan for GAZ, but no decision has yet been made on the loan request for Rusal, according to the source.

More news: Ebola cases on rise, reach 14 in DRC