VTB and Sberbank will not get their money from Rusal

En + Group intends to obtain from VTB and Sberbank write-off of loans for 5.25 billion dollars of the company "Rusal". These measures are mentioned in the "plan" of Lord Barker, with whom he and his European allies entered into negotiations with the US Treasury.
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En +, a producer of electricity and non-ferrous metals controlled by Deripaska, asked OFAC, the US Department of Finance responsible for sanctions, to temporarily exclude the energy and metallurgical company and the world's largest aluminum producer, UC Rusal, closely linked to it from the sanctions list.

It is necessary that the companies manage to fulfill the final part of the so-called "Barker Plan" - a set of measures to exit from sanctions. He was proposed in April by the new independent chairman of the board of directors of En + Lord Gregory Barker. En + owns 48% of UC Rusal.

On the circulation of En + in OFAC, the US Justice Ministry informed the US lobbyist Barker, Mercury. She also revealed what exactly the "Barker plan" is, discovered "Open Media". From the lobbyist's message it follows that:

✔En + negotiates with VTB, which is under the sectoral sanctions of the United States, about writing off loans provided by the Russian bank. The terms of this write-off and the amount of loans are not reported. According to Reuters on April 9, En + owed VTB and Sberbank $ 5.257 billion. How many of them account for VTB's share is unknown. In the fall of 2017, En + repaid Vneshtorgbank's loan ahead of schedule for $ 942.6 million. In addition, En + seeks an independent person to vote for VTB shares of the company (9.6%). He was nominated by the OFAC on July 5 for approval. At the same time, OFAC received a list of candidates for the board of directors of En +.

✔ En + works with Oleg Deripaska and his family to transfer their assets to an approved OFAC organization or trust. What part will be transferred is not disclosed. Also, it is not mentioned which family members are involved. It is known that the wife of Deripaska Polina controls 5.8% of En +.

✔Company expects to open an escrow account or a frozen account, which will receive income from Deripaska's shares. This ensures that the Russian billionaire will not receive any financial benefit from participating in the company as long as it remains under sanctions.

✔En + expects with the approval of OFAC to complete the deal with one of the largest commodity traders in the world Glencore, which was frozen due to the imposition of sanctions against Deripaska and his companies. Glencore planned to convert its 8.75% stake in Rusal into En + shares.

En + asks OFAC to take a decision on the temporary cancellation of sanctions no later than August 5. This day ends the period presented by the US Treasury to US non-residents for the completion of part of the transactions with Deripaska's companies. Meanwhile, for August-September, En + is scheduled for a large number of transactions, including those in need of approval of regulators, which will in fact be impossible to conduct under US sanctions, Mercury reported.

If the "Barker plan" fails, there will be a chance of nationalizing En + Russia or selling the company to Chinese investors, Mercury warns. This option is unprofitable for US President Donald Trump, lobbyists say: he will be criticized by consumers and industrial companies indirectly affected by the sanctions. In addition, in the event of the closure of the Rusal productions, its products will be replaced by the Chinese one, in the production of which emissions to the atmosphere are much higher.

The appeal of Barker and En + was registered by the US Justice Department on July 12. Already on July 20, US Treasury Secretary Steve Mnuchin said that his agency received and is considering the proposals of Rusal to withdraw the company from sanctions. From his words, it did not follow whether they were part of the "Barker plan". Previously, the chairman of the board of directors of En + repeatedly reported that he expects to submit his ideas on the removal of sanctions from the company in mid-summer.