Trumpy to cut sanctions20 Dec 2018 08:21
Aluminium plunges, Rusal shares soar as U.S. to lift sanctions
20-12-2018 08:01
U.S. sanctioned Rusal in April, causing aluminium market turmoil
U.S. Treasury says Deripaska's firms to sever his control
Deripaska's stake in En+ to fall to 44.95 pct from 70 pct
Glencore, VTB Bank are involved in the deal
Aluminium prices fall in London
(Adds market reaction in 2nd paragraph, Rusal and En+ comment in paragraph 10-11)
By Polina Devitt and Nathan Layne
Dec 20 (Reuters) – The U.S. Treasury said it will lift sanctions on the core empire of Russian businessman Oleg Deripaska, including aluminium giant Rusal and its parent En+ , watering down the toughest penalties imposed since Moscow's 2014 annexation of Crimea.
London aluminium prices sank to a 16-month low after the U.S. Treasury's announcement, while shares in Rusal, the world's largest aluminium producer after China's Hongqiao , surged to an eight-month high. ... ...
In April, the U.S. Treasury imposed sanctions on Deripaska, Rusal, En+ and other companies in which he owns stakes, citing "malign activities" by Russia, prompting turmoil in global aluminium markets.
After lobbying by European governments, Washington postponed enforcement of the sanctions and started talks with Deripaska's team on removing Rusal and En+ from the blacklist if he ceded control of Rusal.
Deripaska will remain under sanctions, the Treasury said. However, the three Deripaska companies – Rusal, En+ and power firm EuroSibEnergo – have agreed to restructure to reduce Deripaska's stakes.
Rusal shares soared as much as 26.8 percent on Thursday to their highest since April, the month when the sanctions were announced.
"These companies have committed to significantly diminish Deripaska's ownership and sever his control," the Treasury said in a statement on Wednesday, adding that the sanctions would be lifted in one month.
The Irish government, which lobbied heavily in Washington for the removal of sanctions to protect 600 jobs at an alumina plant, said the move was "a very welcome return" on those efforts.
The Aughinish Alumina plant will be free from the threat of sanctions following a 30-day Congressional review period, the Irish foreign ministry said in a statement. The facility churns out a third of Europe's alumina, a material used to make aluminium.
Rusal welcomed the U.S. decision and said it would continue to do everything necessary to return to regular working conditions. ... ...
En+ also welcomed the decision and added that it was subject to a 30-day review period, during which the U.S. Congress may pass a joint resolution of approval or disapproval. Following the review period, if Congress has not passed a resolution of disapproval, the Office of Foreign Assets Control (OFAC) can remove En+ from the sanctions list. ...
The London Metal Exchange said that it would lift its suspension on aluminium produced by Rusal if the U.S. sanctions were removed. ...
The restructuring
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