US Treasury Department extends wind-down period for RUSAL PL

The US Treasury Department on Monday extended a wind-down period for United Company RUSAL PLC (RUSAL) and its subsidiaries.

The Office of Foreign Assets Control (OFAC) under the department issued General License 14 in the Ukraine-/Russia-related sanctions program. The license authorized US persons to engage in specified transactions related to winding down or maintaining business with RUSAL and its subsidiaries until Oct. 23, 2018.

In accordance with pre-existing guidance, the OFAC will not impose secondary sanctions on non-US persons for engaging in the same activity involving RUSAL or its subsidiaries that General License 14 authorizes US persons to engage in.

"RUSAL has felt the impact of US sanctions because of its entanglement with Oleg Deripaska, but the US government is not targeting the hardworking people who depend on RUSAL and its subsidiaries," said Treasury Secretary Steven T. Mnuchin in a statement.

"RUSAL has approached us to petition for delisting," he said. "Given the impact on our partners and allies, we are issuing a general license extending the maintenance and wind-down period while we consider RUSAL's petition."

On April 6, 2018, the OFAC sanctioned RUSAL for being owned or controlled by, directly or indirectly, EN+ Group, a Russian energy-related company controlled by Oleg Deripaska, which were both under the US sanctions.

RUSAL, based in the Bailiwick of Jersey, is one of the world's largest aluminum producers responsible for seven percent of global aluminum production.