Commodity prices fall on softened Treasury message on Russia’s Rusal

Treasury wants Deripaska to sell

Prices of aluminum sank after the US Treasury sent out a notice on Rusal. It says that the Russian aluminum giant can continue to export metals if owner Oleg Deripaska gives up control. The Treasury also extended the deadline, allowing companies to continue to trade with him until October 23.

Europe has been pushing for some relief because supply worries.

The statement also says the sanctions may be withdrawn altogether.

“RUSAL has felt the impact of U.S. sanctions because of its entanglement with Oleg Deripaska, but the U.S. government is not targeting the hardworking people who depend on RUSAL and its subsidiaries,” said Treasury Secretary Steven T. Mnuchin. “RUSAL has approached us to petition for delisting.  Given the impact on our partners and allies, we are issuing a general license extending the maintenance and wind-down period while we consider RUSAL’s petition.” 

The reaction in the ruble has been minimal.

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