A statement by the US Treasury about its readiness to find an "acceptable solution" to the problems under the sanctions of UC Rusal provoked an increase in the capitalization of the aluminum producer. At the opening of trading in the Hong Kong Stock Exchange, UC Rusal went up by 17% to $ 4 billion, it follows from these trades. At 11.00 Moscow time, the company's capitalization increased by 16.2% to $ 4.7 billion.
On Saturday, US Treasury Secretary Stephen Mnuchin (who is in charge of OFAC, which imposed sanctions on UC Rusal in April) said that his agency received a plan from the Russian company to withdraw it from sanctions, Reuters reported. According to Mnuchin, Washington "intends to find an acceptable solution" and the US "has no plans to squeeze the company out of business."
Details of the plan Mnuchin reveal Reuters refused. The representative of UC Rusal did not comment on Munchina's statement and tell the details of the plan.
On April 6, the US Finance Ministry imposed sanctions against UC Rusal, as well as other companies controlled by Oleg Deripaska. American citizens, companies and their partners are prohibited from conducting "significant financial transactions" with Deripaska and his companies, otherwise sanctions will be extended to them.
In late April, Mnuchin said that sanctions against UC Rusal and En + could be canceled if Deripaska refused to control the companies. Now he controls 48.13% of UC Rusal through En +, in which he owns 66%. Deripaska "agreed in principle" to reduce its stake in En + below 50%, the company disclosed. In this case, its beneficial interest in UC Rusal will fall below 40%, after which, according to the shareholder agreement in UC Rusal, En + loses the rights of the controlling shareholder.
For UC Rusal sanctions are critical - the company in 2017 received in foreign markets almost 80% of revenue, it follows from its data. Only the US market accounted for more than 14% of revenue, the company accounts for about 10% of domestic aluminum consumption in the US.
Initially, it was expected that US companies and their business partners should terminate their contracts with UC Rusal by early May, but OFAC extended the deadline until October 23, 2018. They have no right to conclude new contracts with UC Rusal from April 6.
The Russian government, in response to US sanctions, decided to help UC Rusal. Various options were considered - from the nationalization of the company to support through preferential lending in Promsvyazbank. From the latter the company refused, the representative of Deripaska told "Vedomosti". According to two interlocutors of Vedomosti, close to different shareholders of UC Rusal, Promsvyazbank decided to provide loans to the company to refinance debts on market conditions, placing all sanction and market risks in the bid.
To help UC Rusal undertook and Minpromtorg. In the development strategy of the Russian steel industry until 2030, he made changes that should help UC Rusal with the sale of aluminum in the domestic market. The updated version of the document added 42 new investment projects of various companies that foresee an increase in the processing of aluminum in Russia by 363,100 tons as early as 2018. The changes were made after UC Rusal received US sanctions in April.
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