US Treasury statement on RUSAL sanctions

Last month (19 December), the US Treasury notified Congress of its intention to terminate, in 30 days, the sanctions imposed on En+ Group, RUSAL, and JSC EuroSibEnergo (see previous blog).

Yesterday (10 January), US Treasury Secretary Steven Mnuchin issued a statement in advance of a bipartisan, classified briefing for members of the House of Representatives on the matter. Mr Mnuchin confirmed that “Oleg Deripaska will remain sanctioned, his property and interests remain blocked, and any companies he controls are also sanctioned”, and that “[u]nder CAATSA, any person who knowingly facilitates a significant transaction for or on behalf of Deripaska faces secondary sanctions”.

Furthermore, that En+ Group, RUSAL, and JSC EuroSibEnergo were “designated for sanctions solely because they were majority-owned or controlled by Deripaska. These entities are undergoing significant restructuring and governance changes that sever Deripaska’s control and significantly diminish his ownership. They have committed to provide Treasury with an unprecedented level of transparency into their dealings to ensure that Deripaska does not reassert control. As a result, these entities will no longer be designated for sanctions.”