Published: Tue, April 24, 2018
Markets | By Josh Butler

Treasury Extends Wind-Down Period for United Company RUSAL PLC | U.S

Treasury Extends Wind-Down Period for United Company RUSAL PLC | U.S

The sanctions barred Americans from doing business with Rusal and put pressure on world aluminum supply.

"If it wasn't previously clear whether RUSAL will still be sanctioned if Deripaska sells out, now we have a clear answer", Oleg Petropavlovskiy, an analyst at BCS Global Markets, told Bloomberg.

Shares of US aluminum company Alcoa posted on Monday their largest one-day loss in nine years after the Treasury Department extended the wind-down period for USA customers' transactions with sanctioned Russian rival Rusal by six months. Even if sanctions are not ultimately lifted, buyers also now have more time to seek other suppliers.

"Rusal has felt the impact of U.S. sanctions because of its entanglement with Oleg Deripaska, but the USA government is not targeting the hardworking people who depend on Rusal and its subsidiaries", Mnuchin said in the statement.

"Rusal has approached us to petition for delisting".

Now Mnuchin said Treasury could "provide sanctions relief" if Deripaska sold the company.

The reaction in the ruble has been minimal.

Deripaska was targeted as part of a sanctions-package that hit dozens of Russian tycoons, companies and key allies of President Vladimir Putin.

5 takeaways from Wolves-Rockets Game 3
This one likely falls under the total as well thanks to Minnesota cooling off from outside and Houston playing tighter defense. Houston's offense has been mediocre thus far in this series after being historically good during the regular season.

Countries and companies from around the world have been lobbying the United States government to soften the sanctions against Rusal because it was increasing clear they were causing severe disruption to global commodity markets, not only for aluminium, alumina and bauxite.

Rusal declined to comment on requests from global media, while Deripaska's spokeswoman wasn't immediately available. The company owns mines, refineries and smelters not only in Russian Federation, but also all over the world, for example in Ireland and Jamaica.

France, Germany, Italy and Ireland are part of the coordinated European effort to alleviate the impact the new USA sanctions could have on their own companies, a second French official said.

The US Treasury Secretary met with Russian Finance Minister Anton Siluanov during International Monetary Fund (IMF) meetings in Washington last week.

"It should calm things down", said Daniel Briesemann, an analyst at Commerzbank AG. The most-actively traded palladium futures in NY dropped 5.4%. "It shows that Rusal is trying get off the list". "It looks as if there was a lot of pressure from the USA aluminium downstream industry".

Oleg Deripaska's company RUSAL has suffered the most from the recent sanctions.

Last week, aluminum prices rallied to their highest in years after Washington, in response to what it called "malign activities" by Russian Federation, imposed the sanctions that will in effect choke off access for Deripaska's businesses to the worldwide financial system.

Like this: