US Gives Russian Van Maker GAZ More Time To Comply With Sanctions

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On May 24, Russian aluminium manufacturer Rusal announced its CEO and seven members of its board of directors would step down.

CEO Alexandra Bouriko's resignation was effective as of May 23.

It was not clear what effect the blacklisting would have as many Russian companies have already sought to wind up their Ukraine-linked activities due to earlier sanctions.

In addition, executive directors Vladislav Soloviev and Siegfried Wolf, and Maxim Sokov, Dmitry Afanasiev, Gulzhan Moldazhanova, Olga Mashkovskaya and Ekaterina Nikitina - all non-executive directors nominated by En+ at the previous annual general meetings - tendered their resignation as directors from June 28.

The United States on May 22 gave US customers of Russian van manufacturer GAZ more time to wind down business with the company in the latest softening of sanctions against GAZ owner Oleg Deripaska.

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

The Russian aluminium giant also signalled that turmoil could return to metals markets if the sanctions aren't removed by October, saying that banks will likely cut ties with the company, which would "severely impact" metal production and sales.

"The business of newly sanctioned institutions accounts for less than 2% of our assets, so it will, of course, affect us to some extent, but we still need to see what happens to them, as talks on lifting sanctions for Rusal and some other companies".

Faced with turmoil on the market for a key industrial product, the United States government then indicated the firm could avoid being caught up in the sanctions by cutting ties with Deripaska, one of the so-called Specially Designated Nationals targeted by the sanctions.

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