U.S. Government Grants En+, Rusal Another Two Weeks Before Third-Party Sanctions Kick In

U.S. Government Grants En+, Rusal Another Two Weeks Before Third-Party Sanctions Kick In

Acknowledging the progress En+ Group, U.C. Rusal, and GAZ Group has made in complying with United States government requirements for distancing itself from founder Oleg Deripaska, on Friday the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) granted another extension to the firms’ grace period without stricter sanctions.

A press release posted late last week to the Treasury Department’s website indicated that the General Licenses 13H, 14D, 15C, and 16D have all been amended to show a deadline of January 21, 2019 for the cessation of third-party transactions with the firms. Prior to Friday, the deadline stood as January 7.

A comment credited to a spokesperson for the Treasury Department notes the intricate processes currently in play at the firms necessitated a longer deadline.

“EN+, RUSAL, and GAZ are proposing substantial corporate governance changes that could potentially result in significant changes in control of these sanctioned entities. In recognition that the review of these complex proposals is ongoing, OFAC is extending the expiration date of related general licenses until January 21.”

The trio of companies found themselves on a list of sanctioned entities on April 6, accused of being part of a larger group of Russian firms and individuals engaged in “malign activities” around the world, allegedly interfering with governments in several locations.

Among the nefarious deeds in which OFAC claims the group was complicit is the 2016 United States presidential election – allegations that continue to nip at the heels of the Trump administration over two years later.

As for En+ and Rusal, the firms have agreed to cut ties with Deripaska, instituting a plan that includes changes in business ownership, transparency, and governance. In recognition of the firms’ ongoing efforts at compliance, OFAC has extended the deadline for third parties to cease trade with the sanctioned firms several times since April.