AFP/Getty Images Russian billionaire Oleg Deripaska, who heads aluminium producer Rusal
The Treasury Department on Friday granted another month-long extension to let the world’s second-largest aluminum producer continue to operate, suggesting a deal may soon be reached for Russian billionaire Oleg Deripaska to relinquish control of the company.
Earlier this year, the U.S. Treasury imposed sanctions against Deripaska and eight companies which he holds a large share in, including EN+, which is tied to United Co. Rusal, the world’s second largest aluminum producer.
The activities that the Treasury cited as the reason for imposing sanctions against Russian enterprises include Russian government’s occupation of Crimea and supplying the Assad regime with weapons used to attack their own civilians. A statement that the Treasury published in April which reported that Deripaska has “acted or purported to act for or on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation.”
The Treasury alleged that there are allegations “Deripaska bribed a government official, ordered the murder of a businessman, and had links to a Russian organized crime group.”
The Treasury granted Deripaska an additional extension on Friday, which would allow Rusal to continue to conduct business until Dec. 12, extending the previous Nov. 12 deadline.
The agency said the companies “approached the U.S. Government about substantial corporate governance changes that could potentially result in significant changes in control.“
The Treasury’s extension came as no surprise to Brian O’Toole, a senior non-resident fellow at the Atlantic Council who formerly worked as a senior adviser to the director of the Treasury’s Office of Foreign Assets Control.
“When they extended it a couple of weeks ago the end was in sight,” he said. “My assumption is they extended it a little more to reach a full final settlement, and I wouldn’t be shocked if this was the last one.”
If a settlement is reached with the Treasury, O’Toole predicted that there wouldn’t be a dramatic shift in aluminum prices. On the flip side, he said aluminum prices will go up a lot if there is no deal, which would essentially “take second largest producer off the market.”
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