Manipulation: Germany Asks US to Ease Russia Sanctions

Aaron Brown
April 24, 2018

The U.S. Department of the Treasury's Office of Foreign Assets Control on Monday partially walked back sanctions imposed earlier this month against United Co.

Rusal produces about 6 percent of the world's aluminium and operates mines, smelters and refineries across the world from Guinea to Ireland, Russia to Jamaica.

The announcement sent aluminum prices falling by 7.2 per cent on the London Metals exchange, while other metals including gold, nickel and palladium also fell sharply.

"If it turns out that the sanctions do not stop plants from operating or workers from receiving salaries and sales volumes are maintained, then Deripaska suits the government as the owner", said Andrei Margolin, an economist at the Presidential Academy of National Economy and Public Administration in Moscow.

Deripaska owns a 48 percent stake in Rusal "and controls the company via his shareholder agreement with other owners", said Oleg Petropavlovsky, a senior analyst at BCS Global Markets.

On Monday morning, the U.S. Treasury threw a potential lifeline by making clear it's not pushing for the company's collapse. "RUSAL has approached us to petition for delisting".

Treasury gave Americans until October 23 instead of June 5 to wind down business with Rusal.

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Rusal declined to comment.

Representatives at Alcoa didn't immediately respond to phone calls and emails seeking comment.

Last week RIA Novosti, RT, NTV and other Kremlin faithful Russian media announced that Germany will ask the USA to exempt it from United States sanctions on Russia. French sources said initial feedback had been "constructive". Rusal, easing supply concerns.

Shares in RUSAL surged nearly 15 percent on the Moscow Exchange following the news while global aluminum prices dropped nearly 1 percent. According to Morgan Stanley, it supplied almost 10% of USA aluminum imports previous year, according to Morgan Stanley, as reported by Reuters.

The statement also says the sanctions may be withdrawn altogether.

Edward Meir, an analyst at INTL FCStone, said there is potential for Rusal to survive and that "the 5 mln (million) tons of Rusal production that a week ago was arguably radioactive, will no longer be so".

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