Rusal shares surge in Hong Kong after US eases sanctions stance

Wednesday, April 25, 2018

Print this page Email A Friend!

HONG KONG, China (AFP) — Shares in Russian aluminium giant Rusal soared more than 40 per cent in Hong Kong on Tuesday after the US Treasury said it would consider lifting sanctions if tycoon Oleg Deripaska gives up control of the company.

US President Donald Trump on April 6 imposed restrictions on Russian oligarchs close to President Vladimir Putin following the diplomatic crisis sparked by the poisoning of former spy Sergei Skripal.

Washington accused Deripaska of operating for the Russian Government. Other magnates hit by sanctions include the director of State-owned energy giant Gazprom, Alexei Miller.

The announcement saw Rusal's share price collapse by about two-thirds over the next week, wiping billions of dollars off its market capitalisation on fears about its ability to service huge debt obligations.

However, the US Treasury said Monday it could lift the measures “through divestment and relinquishment of control of Rusal by Oleg Deripaska”.

It also said it would give companies more time to comply with the sanctions.

The Hong Kong-listed firm piled on 43.42 per cent to end at HK$2.18.

Soon after the announcement aluminium prices sank more than seven per cent on the London Metals exchange, having soared to seven-year highs in response to the measures. Rusal accounts for about seven per cent of the world's aluminium production.

Other metals including gold, nickel and palladium also fell sharply.

“The market is clearly taking this as light at the end of the tunnel for Rusal,” Oliver Nugent, a metals analyst at Dutch bank ING, told Bloomberg News.

Deripaska is seen as close to Putin, and also had dealings with Paul Manafort, the former chairman of President Trump's election campaign who is under federal indictment in part over those dealings.




1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed:

6. If readers wish to report offensive comments, suggest a correction or share a story then please email:

7. Lastly, read our Terms and Conditions and Privacy Policy

comments powered by Disqus



Today's Cartoon

Click image to view full size editorial cartoon