Today, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) further extended by one month until December 12, 2018 the expiration dates of three general licenses related to EN+ Group plc and United Company RUSAL PLC (“RUSAL”). RUSAL is one of the world’s largest aluminum producers and was previously designated as a Specially Designated National (“SDN”) on April 6, 2018 for being owned or controlled, directly or indirectly, by the EN+ Group and the Russian oligarch, Oleg Deripaska. Please see our blog post on the original designation here. The Treasury Department press release indicates that the extension reflects still ongoing discussions with EN+ and RUSAL regarding substantial corporate governance changes that could significantly reduce Deripaska’s control. Today’s move is a welcome further temporary reprieve for the global aluminum industry as RUSAL seeks to extricate itself from the impact of US sanctions.
The specific extensions are as follows:
- General License 13D, authorizing certain transactions necessary to divest or transfer debt, equity, or other holdings in EN+ Group PLC, GAZ Group, and RUSAL, was reissued as General License 13E and now expires on December 12, 2018 rather than November 12, 2018 for transactions involving EN+ Group PLC or RUSAL or entities 50% or more owned by EN+ Group PLC or RUSAL (the expiration date with respect to GAZ Group, October 23, 2018, remains unchanged).
- General License 14A, authorizing certain activities necessary for the maintenance or wind down of operations or existing contracts with RUSAL or any other entity 50% or more owned by RUSAL, was reissued as General License 14B and now expires on December 12, 2018 rather than November 12, 2018.
- General License 16A, authorizing certain activities necessary to maintenance or wind down of operations or existing contracts with EN+ Group PLC or JSC EuroSibEnergo or any entities 50% or more owned by EN+ Group PLC or JSC EuroSibEnergo, was reissued as General License 16B and now expires on December 12, 2018 rather than November 12, 2018.