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3/19/2020

OFAC Notifies Congress of Intent to Delist En+, Rusal, and EuroSibEnergo | U.S. Department of the Treasury

OFAC Notifies Congress of Intent to Delist En+, Rusal, and
EuroSibEnergo
December 19, 2018

Agreed Upon Framework Severs Oleg Deripaska’s Control of These Entities and
Substantially Decreases His Ownership Interest
Washington – The U.S. Department of the Treasury’s O ice of Foreign Assets Control (OFAC)
today notified Congress of its intention to terminate the sanctions imposed on En+ Group plc
(“En+”), UC Rusal plc (“Rusal”), and JSC EuroSibEnergo (“ESE”) in 30 days. OFAC has
determined that the significant restructuring and corporate governance changes will enable
them to meet the criteria for delisting. Russian oligarch Oleg Deripaska will remain sanctioned,
and his property will remain blocked.
“Treasury sanctioned these companies because of their ownership and control by sanctioned
Russian oligarch Oleg Deripaska, not for the conduct of the companies themselves. These
companies have committed to significantly diminish Deripaska’s ownership and sever his
control. The companies will be subject to ongoing compliance and will face severe
consequences if they fail to comply,” said Treasury Secretary Steven T. Mnuchin. “OFAC
maintains the ability under the terms of the agreement to have unprecedented levels of
transparency into operations.”
On April 6, 2018, OFAC designated En+ for being owned or controlled by, directly or indirectly,
Oleg Deripaska and other entities he owns or controls. In that same action, OFAC designated
Rusal for being owned or controlled by, directly or indirectly, En+. ESE, a wholly owned
subsidiary of En+, was also designated.
En+, Rusal, and ESE have agreed to a framework to undertake significant restructuring and
corporate governance changes to address the circumstances that led to their designation,
including, among other commitments: (i) reducing Deripaska’s direct and indirect shareholding
stake; (ii) overhauling the composition of the En+ and Rusal boards of directors; (iii) taking other
restrictive steps related to their corporate governance; and (iv) committing to full transparency
with Treasury by undertaking extensive, ongoing auditing, certification, and reporting
https://home.treasury.gov/news/press-releases/sm576

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3/19/2020

OFAC Notifies Congress of Intent to Delist En+, Rusal, and EuroSibEnergo | U.S. Department of the Treasury

requirements. This framework has been documented in a “Terms of Removal,” which, when
executed, will be a binding agreement between these companies and OFAC.
OFAC will continue to aggressively enforce its sanctions on Deripaska, including by closely
monitoring these companies’ compliance with the terms of their removal from OFAC’s List of
Specially Designated Nationals and Blocked Persons (“SDN List”). OFAC reserves the right to
relist one or all of these companies should they fail to comply with the agreement.
Deripaska will remain on the SDN List. All of Deripaska’s property and interests in property,
including entities in which he holds a fi y percent or greater interest, will remain blocked.
Deripaska’s investment in these companies is e ectively frozen and Deripaska cannot obtain
cash either in return for his shares or from future dividends issued by En+, Rusal, or ESE.
Foreign persons will continue to be subject to secondary sanctions should they knowingly
facilitate a significant transaction for or on behalf of Deripaska. U.S. persons will continue to be
prohibited from dealing, directly or indirectly, with Deripaska or any other designated person.
OFAC’s civil enforcement authorities and processes are described in detail in OFAC’s Economic
Sanctions Enforcement Guidelines, 31 C.F.R. part 501, app. A.
Treasury’s Notice to Congress and information on today’s action

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https://home.treasury.gov/news/press-releases/sm576

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