Tangled Rusal Ownership Thwarts Easy End to Sanctions: QuickTake
The U.S. Softens Its Stance Against Russian Metals Giant
United Co. Rusal is searching for a way to keep sanctions at bay, now that U.S. Treasury Secretary Steven Mnuchin gave the aluminum producer a stay of execution. But the price might be having to separate itself from its founder and biggest shareholder. The U.S says it’s ready to drop the penalties on Rusal if its billionaire owner, Oleg Deripaska, relinquishes control. That’s more complicated than it sounds.
Ownership is wrapped up in a web of offshore entities. Jersey-registered En+ Group -- also sanctioned by the U.S. -- owns 48.13 percent of Rusal. Deripaska controls En+ through Fidelitas International Investments Corp., which is incorporated in Panama. Sual Partners, co-owned by sanctioned billionaire Viktor Vekselberg and U.S. citizen Len Blavatnik, holds 26.5 percent. A wholly owned subsidiary of Glencore Plc owns 8.75 percent and most of the remainder is in free float.