US Treasury lifts sanctions on aluminium and power firms linked to Putin ally Deripaska

The US treasury has lifted sanctions on three companies linked to Russian oligarch Oleg Deripaska – an ally of President Vladimir Putin – despite efforts by Democrats to maintain trade restrictions on the companies.

Aluminium giant Rusal, En+ Group and power firm JSC EuroSibEnergo are beneficiaries of the department’s decision to lift restrictions, after Republicans resisted calls from opposition leaders to keep sanctions on the firms.

Read more: Russia hits out at ‘unacceptable’ US sanctions and warns of retaliation

Those in favour of keeping the sanctions had said Deripanska had too much control over the companies to lift restrictions. The sanctions were imposed in April to punish Russia for the annexation of Crimea, meddling in US presidential elections and the support for Syria’s government in its civil war.

But in a statement yesterday, the Treasury said the companies had reduced Deripaska’s stake and reduced his control.

It said directors on the EN+ and Rusal boards would subsequently be independent directors who had no business ties to Deripaska or anybody else singled out for sanctions by the US.

“The companies have also agreed to unprecedented transparency for Treasury into their operations by undertaking extensive, ongoing auditing, certification, and reporting requirements,” the statement said.

Read more: US sanctions batter Russian markets with shares in Oleg Deripaska's Rusal and En+ Group tumbling

Rusal shares were up nearly 10 per cent on Monday morning.

Deripaska himself remains subject to U.S. sanctions.