Will Rusal default on some liabilities due to new sanctions?

Rusal shares plunge sharply on US sanctions

His company Rusal was hit hard on the markets after he was named on the US sanctions blacklist.

The collapse came after US President Donald Trump on Friday announced sanctions against Russian oligarchs close to Vladimir Putin following the diplomatic crisis sparked by the poisoning of former spy Sergei Skripal.

Shares in EN+ had already fallen 22 per cent on Friday after Washington imposed sanctions against Mr Deripaska and his businesses in a targeted move against the oligarch for "advancing Russia's malign activities".

More news: German police say Muenster attacker acted alone, had no political motive

Russia's stock market tumbled yesterday in the wake of the sanctions. Any assets the seven have under United States jurisdiction have been frozen and U.S. nationals are forbidden from doing business with them.

The sanctions, the latest United States effort to punish Moscow for "malign activity around the globe", also affect 17 senior Russian government officials.

Rusal produces nearly 6 per cent of the world's aluminium. The latest sanctions affected companies such as Sberbank, whose shares fell 17% in Moscow. Polymetal, a Russian miner listed in London, was the biggest FTSE 250 faller, down 18%.

More news: Manchester City and Tinder announce multi-million pound partnership

En+, Oleg Deripaska's energy business which listed in London in November, plunged 42 per cent, compounding losses suffered on Friday. As Bloomberg points out, the move also raises questions for Glencore and its billionaire chief Ivan Glasenberg, the commodity giant who is one of Rusal's top shareholders, owning an 8.75 percent stake and also the biggest buyer of its metal, having bought $2.4 billion of metal from it previous year.

Prime Minister Dmitry Medvedev said Moscow was looking at how to support the companies and sectors that have been hit.

"The US list may not be the final list and it feels like there will be more sanctions, so investors do not know which, if any, stocks to hold", said John Meyer, mining analyst at SP Angel.

More news: Everything We Learned From Cynthia Nixon's Wendy Interview

The company said the sanctions were likely to have a "materially adverse" impact on its business and finances. "The situation is pretty egregious from the point of view of legality, it tramples on all kinds of norms, and so a thorough analysis is necessary", he said.

Related:

Comments

Latest news

North Korean leader wants security guarantee from Washington
Mongolia's capital Ulaanbaatar is also considered as one of the possible locations, the report added. The news was confirmed when North Korea has shown their willingness to discuss the issue.

API Reports Surprise Inventories Draw, but Traders Focused on EIA Report
OPEC and its allies are collectively curbing 1.8 million barrels per day of crude output to help eliminate a global oil glut. Gold demand rallied in the closing months of 2017, gaining 6pc year-on-year in Q4 to reach 1,095.8 tonnes.

Death toll rises to 15 in Canadian junior hockey team bus crash
Bill Chow, president of the Saskatchewan Junior Hockey League (SJHL) has dedicated his career to supporting young athletes. Prime Minister Justin Trudeau offered his condolences to the families affected by the accident through Twitter .

Fremont County Forecast: Chance for snow flurries
Saturday Afternoon: It'll stay breezy and cooler through the day on Saturday with a fair number of clouds around through mid-day. Snow overspreads the area Sunday afternoon, with the bulk of the accumulating snow coming Sunday night into Monday morning.

Vatican Arrests Former DC-Based Diplomat on Child Pornography Charges
The violation carries a prison sentence of one year to five years and a fine from 2,500 euro to 50,000 euro (about $3,000-61,400). It was alleged that while at a parish there in December of 2016, Capella had possessed and distributed child pornography.

Everton v Liverpool confirmed XIs: Clyne starts as Klopp makes five changes
With Everton struggling in the midfield, Sam Allardyce introduced Idrissa Gueye for Wayne Rooney 10 minutes into the second half. Speaking during Sky Sports' coverage of the game, Redknapp said: "Watch the keeper's feet".

What Happened on the Final Show Before WrestleMania 34
And finally, the WWE brought in $17.3 million in ticket sales for WrestleMania 32, which beat the previous record by $4.7 million. That'll lead to a feud between Bryan and Shane, as the lovable underdog once again battles a heel McMahon authority figure.

United Kingdom sugar tax: The experts weigh in
Yearly sales of sodas in Mexico declined 6 percent in 2014, after the tax was introduced ( Wall Street Journal ). The so-called "sin taxes" have been found to prolong people's lives, according to a major worldwide study.

Prince Charles kicks off his 16th tour of Australia
The Prince of Wales and the Duchess of Cornwall are now on a tour of Australia, where Charles officially opened the Commonwealth Games.

Election Expands Liberals' Presence on Wisconsin Supreme Court
Former Vice President Joe Biden and a host of other Democrats supported Dallet, while the state Republican Party and Gov. The Brennan Center for Justice found that $2.6 million had been spent on TV and radio advertising in the race.

Former Brazilian President to be jailed
He denies any wrongdoing in that case or in several other corruption cases that have yet to be tried. An appeals court upheld the ruling in January and increased the sentence to 12 years and one month.

Ravens sign QB Robert Griffin III to 1-year deal
In fact, it's Robert Griffin III , who last played in the National Football League back in 2016 with the Cleveland Browns . He was eventually benched for all of 2015 in favor of Kirk Cousins and released by the Redskins in 2016.

Center of the Milky Way has thousands of black holes, study shows
Scientists were able to pinpoint at least 12 black hole binaries, where a black hole is siphoning material from a companion star. Scientists have suggested for decades that lots of stellar black holes are circling in the center of galaxies, including ours.

Julian Edelman may have helped prevent a school shooting in MI
The detectives called police in MI , who immediately drove to the house where the threatening message originated. He was charged with making a false report of a threat of terrorism, a felony, according to The Times .

By trading for Brandin Cooks, Rams get missing piece on offense
Entering the final, fifth-year option of his rookie contract, Cooks was due for a massive extension this offseason or next. The other three players include Talib and Peters, as well as free agent signee Ndamukong Suh .

Other news