Sanctions against three Russian companies tied directly to sanctioned Russian oligarch Oleg Deripaska will be lifted, the U.S. Treasury has announced, citing adequate restructuring measures to distance themselves from the billionaire.
“Treasury sanctioned [EN+, Rusal and EuroSibEnergo] because of their ownership and control by sanctioned Russian oligarch Oleg Deripaska, not for the conduct of the companies themselves,” Steven Mnuchin, US Treasury secretary, said in a statement. “These companies have committed to significantly diminish Deripaska’s ownership and sever his control,” Mr Mnuchin said.
“The companies will be subject to ongoing compliance and will face severe consequences if they fail to comply. [The Treasury’s Office of Foreign Assets Control] maintains the ability under the terms of the agreement to have unprecedented levels of transparency into operations.” Under the agreement with Treasury, the three groups have agreed to reduce Deripaska’s ownership stake, overhaul their boards of directors and commit to “full transparency with Treasury by undertaking extensive, ongoing auditing, certification and reporting requirements”.
Deripaska and the three companies were sanctioned last April as part of the U.S. government’s efforts to punish Russia for interfering in the 2016 presidential election.