Thursday , October 28 2021

Dutch bank transferred settlements with UC Rusal Euro due to sanctions :: Business :: RBC


UC Rusal Oleg Deripaska received the consent of the Dutch bank ING to change the settlement currency from dollar to euro with a loan of $ 2 billion, otherwise the company would not be able to pay the bank if US sanctions came into force

Photo: Ilya Ninoshin / Reuters

Euro Transfer

In August, UC Rusal Maulig Deripaska obtained the consent of ING Bank to change the settlement currency from dollar to euro on a loan raised until April 6, 2018, when American sanctions were imposed on the aluminum producer. According to a third-quarter report by Rusal Bratzk, the company's largest.

ING is a loan agent under the pre-export financing agreement of May 24, 2017 to 2 billion USD. "ING Bank agrees to make the necessary changes (…) in trade documents ending before April 6, 2018, to ensure ability to make or receive payments on them in euros" , The report said.

Representative Aluminum company declined to comment, the ING bank did not respond to RBC's request.

The US Treasury Department on April 6 included UC Rusal, along with other key assets of Deripaska, on the sanctions list, who are cut off from the US financial system: if they work with them, all legal entities and individuals are at risk of secondary sanctions. Back in April, the US Treasury Department expressed its willingness to lift sanctions from the company if Deripaska relinquishes control of it.En + Chairman of the Board (through which Deripaska is the owner) Of UC Rusal), Lord Gregory Barker, suggested to the Foreign Assets Control Office of the US Treasury (OFAC), a plan to change the structure of the Group's shareholders and management reform. It provides the transfer of assets of a businessman and his family to a management structure approved by OFAC.

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While the parties did not agree, but the US Treasury Department continues to provide UC Rusal with the delay in the entry into force of sanctions, the last time the agency passed the deadline for completion of transactions and actions of American companies with Deripaska buildings until January 7.

On Tuesday evening, November 13, Deputy Prime Minister Dmitry Kozak, in an interview with Russian television channel 24, noted that Deripaska has yet to receive an answer from US authorities for proposals on the restructuring of assets. "There was no positive or negative answer to all his proposals to the organization Restructuring of companies, "he said.

Preparation for sanctions

As reported by Reuters, most of the En + payments and credits were able to transfer from dollars to the euro and pound sterling before April 2018. US sources said that RBC, which participated in the preparation of Deripaska structures for these sanctions, Currencies other than UC Rusal's transactions and procurement transactions around the world.

As RBC wrote earlier, the term of UC Rusal's annual contracts for the supply of aluminum to foreign consumers ended on October 1. The conclusion of new agreements usually occurs in September-November, analysts Fitch reported. Despite repeated postponements of the entry into force of sanctions, UC RUSAL can not enter into long-term contracts, said RBC Director of Rating Group companies in ACRA Maxim Khudalov: counterparties do not need risks and uncertainty. But, according to him, the company will be able to continue to sell the metal market instead, maintaining the level of production rather than creating a shortage of metal in the world.

"I think that the US Treasury Department will postpone the timing of the imposition of sanctions on UC Rusal, but cancel them far more difficult than their imposition.In accordance with the rules of sanction, Congress should pick up at the request of the President of the United States, and such request continues completely" help Russia " Donald Trump's impeachment, "the expert said earlier.

In August, one of the enterprises of UC RUSAL, which specialized in the supply of aluminum in the United States, aluminum plant Nadvaitsky, stopped working due to loss of customers. In September, the ROC plant for the removal of a Russian UC in Armenia ("Armenia") began reducing capacity and transferring workers to a part-time job due to a drop in demand for products due to US sanctions.

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