Homepage / Share Market / Sanctioned tycoon Deripaska resigns as director of his firm Rusal
CEO explains why his Australian company just announced 8,000 job cuts European stocks seen higher amid rising trade war fears; OPEC in focus White House says China's 'economic aggression' is a global threat The inspiration for tech titan Jack Ma's Alibaba was an unlikely politician Microsoft's Nadella: Trump administration policy separating children from families is 'abhorrent' A major cryptocurrency exchange says it was hacked and $30 million in coins was stolen Canada approves recreational use of marijuana Lapses at many levels of bank led to India's huge PNB fraud, internal report shows Australia's largest telco says it will cut 8,000 jobs over the next three years China-based hacking campaign is said to have breached satellite, defense companies Kim Jong Un and China's Xi discuss 'a new future,' North Korean media says Asian shares set for mixed open after trade fears spook markets worldwide Cramer: Tesla's stock still has more upside—just use the right chart Cramer points to the trillion-dollar question about US-China trade: What about Apple? Elon Musk: If I can help kids at the border, I will SNAP CEO on Innovation and Imitation Oracle reports strong fourth quarter results and stock edges up Start-up that uses polymer science to make avocados last longer just scored a deal with Costco Here's a map of every Whole Foods where you'll get an Amazon Prime discount The CEO of agency giant IPG welcomes challengers to Facebook and Google: 'The more the merrier' Traders bet one soaring tech stock is about to lose steam Facebook takes another shot at grabbing social media stars from YouTube UK says it is happy with Rupert Murdoch's Sky News commitments related to bid for parent company Apple CEO Tim Cook says separating immigrant children at US border is 'inhumane' In the short history of Trump trade conflicts, it has paid to buy the market dip Danny Meyer stands by cashless push: 'We're unaware of any federal law' that requires accepting cash Express Scripts boots another online pharmacy — CareZone — from its network Home Depot and two other Dow stocks look ripe for a buy, says technician Snap shares plunge after analyst says users are less engaged White House's Navarro on China trade talks: No knowledge of Apple iPhone exemption Merkel, Macron agree on euro zone budget Walgreens and Humana are partnering to create senior health hubs Sarepta Therapeutics shares soar 50% on positive preliminary results for muscular dystrophy gene therapy Verizon pledges to stop some selling of phone-location data There's one Dow stock having a great day: Verizon Europe's IPO market heats up, and unicorns are getting in line Amazon wants a hand in all your deliveries, unveils last-step option for FedEx, UPS and private mail Soybean prices drop to two-year low on US-China trade war fears Cramer: US-China trade fight 'is not serious' right now; Trump has upper hand China has a limited number of weapons to use in a trade war with the US Laws governing medical marijuana could soon be relaxed in the UK The flip phone is about to make a big comeback as foldable screen nears reality Here is what a student could have made if they invested their 2014 summer earnings in FANG stocks VW names interim Audi boss, seeking to steady brand after its CEO's arrest Here’s the fundamental error in Trump’s trade strategy Chip stocks dive on trade war fears as industry gets a majority of its revenue from China New home construction booms to a near 11-year high in May A dangerous dot-com era phenomenon is back and it's going to inflict pain, Jim Paulsen warns Netflix gets a $500 price target, the highest on Wall Street Apple is the big tech firm most at risk from a US-China trade war AT&T promises fewer ads, tailored programming after merger with Time Warner Stocks making the biggest moves premarket: VZ, TSLA, AAPL, WFC, T, SIRI & more Billionaire Howard Marks: Computers won't put the best human investors out of business CVS introduces prescription drug delivery as it braces for Amazon's possible entry Former turnaround exec Bozoma Saint John: Uber was 'the poster child for everything gone wrong' Trump told Tim Cook that US would not place tariffs on iPhones, but Apple's still worried Amazon's Alexa will now be your butler at Marriott hotels Billionaire investor Jim Mellon: Sharp sell-off in US stocks is the start of a 'very major correction' South Africa will avoid a ‘knee-jerk’ reaction to currency weakness, central bank deputy says Dow futures tumble as China responds to latest Trump threat North Korea's Kim visits Beijing as South Korea and the US halt military drills 'Belligerent' US trade stance could hurt America's iconic companies the most, Jim O'Neill says Irish central banker says it's too early for the ECB to discuss future rate hikes All global currencies will become cryptocurrencies, Circle CEO says Abu Dhabi Financial Group unit offers to buy Abraaj's investment management arm Beijing subways could get facial recognition and palm scanning tech, Chinese media reports Roche agrees to pay $2.4 billion to buy the rest of Foundation Medicine Japanese e-commerce company Mercari surges more than 70% in Tokyo debut European markets seen sharply lower as Trump threatens new tariffs China's central bank delivers surprise stimulus as trade spat with US worsens Shares of China's ZTE sink 23% after US Senate targets company in new bill Has a US-China trade war begun? Experts weigh in North Korean leader Kim Jong Un is in China on a two-day visit: Chinese state media China pledges it will fight back firmly if Trump goes ahead and publishes list of additional tariffs Trump reportedly told Apple's Tim Cook that iPhones will be spared from China tariffs Smartphone maker Xiaomi to postpone mainland China listing until after Hong Kong IPO Asian shares poised to edge higher despite trade jitters; oil prices rise Senate passes military funding bill that would reimpose sanctions on Chinese telecom ZTE Cramer Remix: Tariff headlines have investors flocking to these stocks Cramer's warning on recent tech IPOs: Be careful with their sky-high valuations Elon Musk sends company email about 'extensive and damaging sabotage' by employee Elon Musk sent an email to Tesla employees about another fire in its factory on Sunday Microsoft condemns 'forcible separation' of children from families after criticism of work with ICE Snap CEO Evan Spiegel says even his wife, Miranda Kerr, hated the app’s redesign UBS CEO: Blockchain technology almost a must have for business Bitcoin jumps after New York approves Square's Cash app for crypto trading Apple is worried about Chinese tariff retaliation that could hamstring its supply chain Elon Musk tells shorts on Twitter they have 3 weeks to cover Watch these drones string power lines along poles high above the ground SurveyMonkey confidentially files for IPO President Trump signs space junk directive aimed at cleaning up the cosmos Dropbox rises more than 8% adding to last week's gains President Trump directs Defense Department to 'immediately begin the process' of establishing 'Space Force' as sixth military branch Elon Musk hung out in the Netscape lobby in the '90s hoping to get a job Square gets regulatory green light for cryptocurrency trading in New York Domo drops below billion-dollar valuation in lead-up to IPO Russia cuts Treasury holdings in half as foreigners start losing appetite for US debt With Twitch, Amazon tightens its grip on live streams of video games This fitness app wants you to have a personal trainer in your pocket Intel shares fall after small Wall Street firm downgrades chipmaker, predicting slower growth

Share Market

Sanctioned tycoon Deripaska resigns as director of his firm Rusal

Russian metals tycoon Oleg Deripaska stepped down as a director of his aluminum firm Rusal as part of a choreographed series of steps which he hopes will persuade the U.S. government to rescind sanctions that have crippled his businesses.

Deripaska is now actively preparing the next step: reducing his stake in En+, the group which controls Rusal, to a level where Washington would be willing to remove his businesses from its sanctions blacklist, three sources familiar with the discussions said.

Deripaska and the biggest companies in his empire were included on a U.S. Treasury Department sanctions blacklist in April. Washington said he and fellow tycoons were profiting from association with a Kremlin conducting “malign activities” around the globe.

The sanctions paralyzed Rusal’s supply chain, scared off many customers, froze Deripaska out of Western debt markets and sent shares in his major companies plummeting.

In an illustration of the damage dealt by the sanctions, Russia’s VTB bank said it had become owner of a 9.6 percent stake in En+ after the firm’s stocks sank.

The price slump triggered a margin call, forcing a minority shareholder, Singapore’s AnAn Group, to relinquish the stake to the lender, a VTB executive said.

In a statement issued in Hong Kong, where it is listed, Rusal said Deripaska, a non-executive director of the company, had stepped down as director.

That came a day after the chief executive and seven board members quit, also in a move to distance the firm from Deripaska and his associates.

Deripaska is seeking to persuade Washington to ease the sanctions on his businesses in exchange for him scaling back his association with his companies.

The key element now is for him to reduce his controlling stake. One source familiar with the discussions said Deripaska had been intent on holding on to control, but has now accepted there is no alternative if his businesses are to survive.

The maneuver under consideration, according to three sources familiar with the discussions, would mirror steps taken by another sanctioned Russian tycoon, Viktor Vekselberg.

His Swiss-based company Sulzer bought some of Vekselberg’s shares, prompting the U.S. Treasury Department to say that Sulzer was not at risk from sanctions.

Deripaska currently holds a 66 percent stake in En+. The group declined immediate comment when contacted by Reuters.

The three sources, who asked not to be named, said that the share buyback maneuver was one of several options under consideration for reducing Deripaska’s stake.

The sources said Deripaska’s representatives were in discussions with the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which oversees sanctions, to establish if the maneuver would be deemed enough to remove the companies from the sanctions blacklist.

“It’s one of the options being discussed now with OFAC,” said one of the sources.

A U.S. Treasury official, asked about any discussions with Deripaska’s representatives on him reducing his stake, said OFAC does not generally comment on ongoing discussions about sanctions relief.

“OFAC reviews each request based on the facts and circumstances of the case and individual merits,” the official said.

Underlining the depth of the difficulties facing Deripaska’s firms, a Russian government source said that Rusal had asked the Russian government to buy some of its output.

Since sanctions hit, stocks of aluminum ingots have been stacking up at at least one Rusal plant, because buyers have canceled orders.

The government source, who spoke on condition of anonymity, said Deripaska had also applied for loans for Rusal from Russian lender Promsvyazbank.

The bank is under the control of the Russian central bank and has been earmarked by the Kremlin to provide finance to sanctioned Russian firms, a task most regular banks will not undertake because of the sanctions risk.

Deripaska also sought state support for automaker GAZ, which is part of his business empire and has also been affected by the sanctions, the government source said.

Russian authorities have approved a loan for GAZ, but no decision has yet been made on the loan request for Rusal, according to the source.

Rusal did not reply to a Reuters request for comment on requests for state help.

Source: cnbc europe
Sanctioned tycoon Deripaska resigns as director of his firm Rusal

Comments are closed.