Ukraine expands sanctions on Russian companies, individuals

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The Russian billionaire, who has close ties to President Vladimir Putin, agreed last month to reduce his stake in EN+ Group - the holding company that controls Rusal - to below 50%.

The outgoing CEO, Alexandra Bouriko, only took up the role in March. His departure follows those of the company's CEO and seven other directors, which were announced Thursday.

Earlier the President of Ukraine announced that the new sanctions will be harmonized with the United States sanctions, including the sanctions placed by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) on 6 April 2018 against Oleg Deripaska.

The US sanctions rocked the aluminium industry in April as buyers scrambled for supplies and many firms cut ties with Rusal, which was producing about 17pc of world output outside of China.

But with execution of a plan by oligarch tycoon Oleg Deripaska to relinquish control over Rusal's parent EN+ Group still unsettled, it remains unclear how far the company is from meeting USA demands for trading restrictions that are crippling its operations.

On May 18, Oleg Deripaska left the board of directors of En+.

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 manoeuvre would be deemed enough to remove the companies from the sanctions blacklist.

Each of the individuals in question "has confirmed that he/she does not have any disagreement with the board and that there is no other matter relating to his/her resignation which needs to be brought to the attention of the shareholders of the company", Rusal said.

"Opportunities to provide financing to the group on commercially reasonable terms will be very limited", it said. "The company may not be able to maintain its operating performance at a certain level required to service and repay its indebtedness and that may result in current creditors accelerating repayment".