Oleg Deripaska’s aluminium-to-energy group En+ has presented the final version of a plan to the US Treasury in a bid to free itself from sanctions, which threaten to sink the company and upend global metal markets, The Financial Times writes.
Under the proposal, which has been filed with the Office of Foreign Assets Control (Ofac), Deripaska has agreed to reduce his holding in London-listed En+ to below 45% from around 70% currently, primarily through the transfer of shares to VTB, which is itself under US sanctions, according the the newspaper.
The plan, which has not yet been approved by Washington, represents a major concession to the US following its unprecedented move in April to try to end Deripaska’s ownership of London-listed En+, which controls Rusal, the biggest aluminium producer outside China.
While the involvement in the plan of VTB may raise questions in Washington, people familiar with the proposal say it would only hold the En+ shares briefly until sanctions are lifted.
At that point it would sell them into the market to cover loans it has made to Deripaska. During the brief period VTB controls the shares, their voting rights would also be controlled by two US citizens appointed by En+.
In addition, any dividends the billionaire receives from his remaining shares will also be placed into an escrow account. The money will not be released until the oligarch himself is removed from the US sanctions list.
If the sanctions are lifted, En+ would revive a share swap deal with Glencore, the Swiss miner and commodity trader, that would help dilute Deripaska’s stake to below the 45% level.
