UC Rusal announced the resignation of the company's management, linking it with the implementation of the plan to exit the US sanctions list. So, since May 23, the general director of UC Rusal Alexandra Buriko, who was appointed to this position three months earlier, is leaving. This is stated in a message published on the company's website and distributed on the Hong Kong Stock Exchange. From now on, Yevgeny Nikitin, 52, will act as general director of UC Rusal.
Since June 28, UC Rusal's board of directors has also left Vladislav Soloviev, Sigfrid Wolf, Maxim Sokov, Dmitry Afanasyev, Gulzhan Moldazhanova, Olga Mashkovskaya and Ekaterina Nikitina. They will not offer their candidacies to the shareholders' meeting, which will be held on June 28, for approval for a new term. Earlier, on May 18, the En + group, which owns a 48.1% stake in UC Rusal, said that Oleg Deripaska had left the company's board of directors and would not be re-elected. April 6, Deripaska, as well as eight of its companies, including UC Rusal and En +, were on the US Ministry of Finance's Sanction List.
Staff changes in UC Rusal are part of the company's anti-sank plan. "Since April 2018, the company, acting in the interests of its creditors, shareholders and partners, is constantly negotiating with various authorities in an effort to achieve a weakening of the sanctions regime imposed by OFAC (the Office for Control over Foreign Assets of the US Treasury) or withdraw from the SDN (Specially Designated Nationals List, list of sanctions), "the company said in a statement. It also notes that on May 22 OFAC clarified the conditions for exclusion from the sanctions list. This will happen if "the changes in circumstances that led to the imposition of sanctions" are revealed. " In the case of UC Rusal, this condition will be "refusal to control the company by any person who has been sanctioned by the SDN, including Oleg Deripaska," Rusal said. The company's board of directors reviewed the group's plan to protect its interests and decided that it should be implemented. The decision to change top management should be considered in this context, the report says.
The plan to save companies from the sanctions of the US Treasury was proposed by Lord Gregory Barker, independent chairman of the board of directors of En +, and approved by the board of directors of the group. In fact, it involves fulfilling the requirements of the US Treasury. In particular, Deripaska was recommended to reduce the stake in En + from the current 66.1% below 50%, to leave the company's board of directors and appoint new independent directors to replace those who left the company due to sanctions. Deripaska "agreed in principle" to such conditions at the end of April.
However, at the same time, at the end of April, a representative of the US Treasury clarified that reducing the share of a person under sanctions does not guarantee the company's exclusion from the sanctions list.
On May 21, UC Rusal reported the likelihood of adverse impact of US sanctions on the company's business. Shareholders and investors were advised to be extra careful when making transactions with the company's securities.