Mnuchin says Rusal sanctions were not to put company out of business

Mnuchin Confirms US Doesn't Want To Put Rusal Out Of Business

The US Treasury has extended the deadline for investors to divest or transfer their holdings from United Company Rusal Plc, En+ Group PLC, and the GAZ Group until June 6, instead of the planned deadline of May 7.

Meanwhile the US Treasury Department has extended the deadline until June 6 for Russian billionaire Oleg Deripaska to divest from En+ and related entities, Bloomberg reported. This description corresponds to Oleg Deripaska. "We'll come back to the market as and when the situation is clear", he told a media briefing. A Treasury spokesman on Tuesday night could not provide a precise date for the original deadline. Because of the sanctions, the stock prices of his companies collapsed, and Rusal even said was on the brink of insolvency. Rusal shares in Hong Kong, which have lost more than half their value since the sanctions were announced, jumped nearly 10 percent.

Washington's clarification follows two weeks of chaos in global metals markets following the announcement of the sanctions.

Rusal's stock has rebounded in recent weeks and is up 75% from the record low it reached last month in the fallout from the U.S.'s initially proposed sanctions. The metal initially surged as the USA sanctions fanned fears of a shortage, and then prices collapsed last week, as signs emerged of a possible resolution.

Mr Yoshihiko Katsukawa Senior Managing Executive Officer said that "We are struggling to find a way on how to deal with the issue and to secure alternative supplies, as Rusal is the world's second-biggest aluminium producer and has a big impact". Another 26.5% of the company belongs to SUAL Partners and Zonoville Investments (which is owned by Vekselberg and also included in the SDN list), and 8.75% - to Swiss trader Glencore. However, the US Treasury said later that the reduction of Deripaska's share in the company would not necessarily mean that sanctions against Rusal would be lifted.

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