Ivan Glasenberg quits Russian board amid pressure of United States sanctions

Ivan Glasenberg quits Russian board amid pressure of United States sanctions

Rusal and seven other Deripaska-linked businesses were the most prominent targets in a list of 12 Russian companies that the United States hit with sanctions last Friday meant to punish the country for actions in Crimea, Ukraine and Syria, and for attempting to subvert Western democracies. That's up 13% since Thursday, before the U.S. announced sanctions. "Imagine how tight the world market is going to be if you lose a 10th of world supply, even for the short term". The company floated its shares in London in November, raising $1bn (£710m), despite concerns that it could face sanctions related to Deripaska's ties to Putin.

After declining through most of this year, aluminium is heading back toward its peak of $2,290.50 a tonne reached last December, a more than five-year high.

The share price of the company "RUSAL" on Monday morning fell more than 40% on the Hong Kong stock exchange and by 46.9% in the Moscow exchange. By making it virtually impossible for Deripaska's businesses to trade in U.S. dollars, the measures threaten the empire of one of Putin's closest allies. Alcoa, the largest USA producer, has climbed 14% since the close last Thursday, before the sanctions announcement. The websites of Rusal and sister company En+ were down on Tuesday evening for unknown reasons, although they'd worked earlier in the day. EN+ owns a controlling stake in Rusal and the energy company that powers its aluminium smelters.

More news: Ferrari fined for pit incident

A Moody's spokeswoman said the firm would not comment on whether it was reassessing any of its other Russian ratings. On the New York Mercantile Exchange, palladium futures for June delivery climbed 4.2 percent to $932.50 an ounce, the biggest rally for a most-active contract in seven months.

Glencore PLC said Chief Executive Ivan Glasenberg had resigned as a director of United Co. Glencore will not proceed with the Transaction at this time in light of the designation of Rusal and EN+ as SDNs. China or any other non-ally of the USA will likely buy shipments, and there are no means to effectively audit trade flows, they said.

Still, there's no real way that aluminium from Rusal can be prevented from finding its way onto the global market eventually, according to Sanford C Bernstein analysts.

Related Articles