Rusal warns sanctions 'materially adverse' to company; CEO, seven directors to resign

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Rusal warns sanctions 'materially adverse' to company; CEO, seven directors to resign

The US government has previously made clear that sanctions on Rusal could be lifted depending on how much Deripaska is willing to distance himself from the company. When the saga began, there were fears for up to 1,000 jobs in West Limerick, both through direct and indirect employment.

The US Treasury Department on Tuesday said it would extend the deadline for US customers to comply with sanctions against Deripaska's GAZ, a vehicle maker, giving Americans until October 23 instead of June 5 to wind down operations and contracts with the company.

The chief executive and half the board of Rusal have quit as the aluminium producer battles to escape punishing United States sanctions that could cripple its business. He is also a person of interest in the USA investigation into Russian collusion in the Trump presidential campaign.

Most of the board members who have stepped down were nominated for their positions by EN+, the holding company through which Deripaska controls Rusal. The mass exodus is part of a bid to alleviate sanctions imposed on the company by the US Treasury.

"Following the efforts of the company's management to protect its interests and shareholders, following the introduction of USA sanctions, Oleg Deripaska, the non-executive director, resigned on May 25, 2018", the report states.

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.

The U.S. Treasury Department said U.S. customers of GAZ will now have until October 23 instead of June 5 to wind down operations and contracts with GAZ. "Opportunities to provide financing to the Group on commercially reasonable terms will be very limited", the statement said.

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