Russia's Rusal says Deripaska resigns as director

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"Following the efforts of the company's management to protect its interests and shareholders, following the introduction of USA sanctions, Oleg Deripaska, the non-executive director, resigned on May 25, 2018", the report states.

Shares of Rusal have gained as much as 4.8 per cent on Thursday in Hong Kong after the embattled Russian aluminium giant appointed an interim chief executive and announced a sweeping board reshuffle as it seeks to be extricated from sanctions imposed by the United States. The mass exodus is part of a bid to alleviate sanctions imposed on the company by the US Treasury.

Rusal's troubles began on April 6 when the United States gave buyers a deadline of 30 days to exit dealings with the company, before transactions in dollars were prohibited.

THE CONTROLLING owner of the parent company of Aughinish Alumina, Oleg Deripaska, has officially resigned from his role as non-executive director at Rusal.

Rusal owns an alumina plant employing 450 people in Limerick, Ireland, which supplies 30% of the European alumina market.

The government source, who spoke on condition of anonymity, said Deripaska had asked the government to start buying aluminium from Rusal and had also applied for loans for Rusal from Russian lender Promsvyazbank.

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Deripaska subsequently announced he would cut management ties with Rusal and his holding company En+, and reduce his stakes to under 50 percent.

In order to take up the U.S. deal and avoid sanctions, Deripaska's shareholding in EN+ would need to be reduced to below 50 percent, and a majority new board of independent directors would also need to be appointed. In addition, since June 28, members of the En+ board of directors, which is controlled by Deripaska, have left their posts.

The bank is under the control of the Russian central bank and has been earmarked to provide finance to sanctioned Russian firms. The group declined immediate comment when contacted by Reuters.

A Treasury spokesman did not reply to a request for further clarification of Tuesday's guidance.

Russian Finance Minister Anton Siluanov said Thursday the Russian state would provide the firm with loans at market rates if banks refuse to lend to Rusal for fear of falling foul of USA sanctions.

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