In general, Trump has made unprecedented use of financial levers to pressure countries including North Korea, Iran and even NATO ally Turkey. Rusal’s net debt stood at $7.5 billion at the end of September. The shares rallied as much as 8.6 percent in Hong Kong. Rusal is the world’s largest aluminum producer outside China. “The increase in performance indicators in the third quarter of 2018 is a result of a one-off recovery effect after a significant reduction in sales volume in the second quarter of 2018 when the sanctions were announced,” a Rusal representative said. Europeans companies are agitating to ease sanctions on Rusal because of the impact on the aluminum market, while many U.S. lawmakers argue Mnuchin is going too easy on Russia.
But Treasury officials have been steadfast in their defense of taking on Rusal. “The U.S. government is able to unleash incredibly powerful sanctions, and can do so confident in the knowledge that as additional information comes in, they can ameliorate the impact of those sanctions on U.S. and third-country businesses,” said John Smith, who was director of OFAC at the time the sanctions on Rusal were announced. China’s aluminum exports jumped to a … The company said third-quarter earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 23 percent year-on-year to $676 million in July-September on revenue up 19 percent to $2.92 billion. Sanctions relief for Rusal, the world’s second-largest aluminum producer, will remove a source of uncertainty from the market. 13661, sold an additional 17 percent of Sibur’s shares to Shamalov.
Aluminum markets are now focused on the Treasury Department’s Office of Foreign Assets Control, which implements sanctions, as investors and customers wait for a decision on Rusal. All quotes delayed a minimum of 15 minutes. But the Rusal penalties have caused such widespread pain that Mnuchin may be forced to holster what’s become one of Trump’s favorite weapons in his global economic war. Before it's here, it's on the Bloomberg Terminal. If sellers rush to offload that stock quickly, it could put pressure on spot prices and push the market further into contango, a situation where near-dated prices are cheaper than futures. Rusal is among the largest companies the U.S. has ever put on its sanctions designation list. That’s because import tariffs have made metal premiums higher compared with the rest of the world. The Treasury Department is expected to soon lift sanctions on Rusal after the Senate failed to pass a resolution that would have kept financial restrictions on companies owned by Russian billionaire Oleg Deripaska. Read: GOP Senate Backs End to Sanctions on Firms Tied to Deripaska. These General Licenses 13D, 14A, and 16A amend their previous versions by extending the expiration date from October 23, 2018 to November 12, … Japan's top aluminum rolling company, UACJ Corp 5741.T, said on Nov. 1 that it was removing Rusal from its 2019 suppliers list due to uncertainty over the sanctions. Washington – The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today extended the expiration date of certain general licenses related to EN+ Group plc (EN+) and United Company RUSAL PLC (RUSAL). Republican Senator John Kennedy of Louisiana has gone so far as to ask Treasury how Russia’s economy can be “brought to its knees” through sanctions. En+ also appointed a new CEO on Friday. Treasury may also need Congress’ approval to lift sanctions related to Deripaska. "I think this is the end of Rusal," said Åslund, a former Swedish diplomat who later served as … Have a confidential tip for our reporters? Rusal is among the largest companies the U.S. has ever put on its sanctions designation list. Citigroup Inc. estimates there could be more than 300,000 tons of Rusal metal in Europe alone. Our Standards: The Thomson Reuters Trust Principles. Its primary aluminum production rose 1 percent to 940,000 tonnes, while primary aluminum and alloys sales rose 8.1 percent to 1.046 million tonnes. Under the sanctions, Rusal was limited to working with its existing customers and blocked from signing new long-term contracts. have recruited directors and management not linked to Deripaska in recent months as part of talks with Washington over easing U.S. sanctions. Disruptions in supplies of a metal used in everything from aircraft to computers to power lines threatened to ripple across other economic sectors. Sanctions designations jumped 30 percent in 2017 compared to former President Barack Obama’s final year in office, according to the law firm Gibson Dunn. Since the April 6 announcement, the Russian’s wealth has dropped 59 percent to $3.1 billion, according to the Bloomberg Billionaires Index. The sanctions on the company spurred demand for Chinese metal.
And Treasury officials have promised more penalties on Russia. Recurring net profit at Hong Kong-listed Rusal was $623 million, up 43 percent from a year ago.
13662. In European and Asian markets, the premiums paid by consumers to cover the costs of metal to local ports have been falling since the Treasury signaled it wanted a deal to lift sanctions. OFAC’s next step is expected in November. 27.07.2020.
“The U.S.’s aggressive use of sanctions may finally spur allies and major companies to develop alternatives to the U.S. financial system that gives our sanctions enormous global weight.”, Related: Aluminum Seen Facing ‘Doomsday’ If Rusal Sanctions Proceed. Nikitin had previously headed Rusal’s aluminum division. There are signs that’s already starting to happen. It’ll now try to sign new supply contracts and likely switch to producing more specialized aluminum (known in the industry as value-added products) and less commodity-grade metal. Treasury is “in a very tough position,” said Dan Fried, who previously served as a coordinator for sanctions policy at the State Department. A huge volume of metal is poised to return to the market.
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