At the end of last year, December 19 it became known that the OFAC (Office of Foreign Assets Control, a division of the Ministry of Finance, responsible for law enforcement in the area of sanctions) has notified Congress of intention within 30 days to delete, En + Group, UC RUSAL and EuroSibEnergo from the list of sanctions. But without changes in the fate of Oleg Deripaska: “Kremlin insider”, as he calls it the American Ministry of Finance in his letter, he remains in the Black list (SDN List).
The U.S. Treasury has notified Congress of its intention to lift sanctions against companies linked to Russian businessman Oleg Deripaska, as he has agreed to reduce the control of En + in 44,95%, according to a statement released by the office for foreign assets control of the U.S. Treasury Department (OFAC). However, as noted in the message, he Deripaska will remain under sanctions, and its assets will be frozen.
“We stress that Deripaska remains under sanctions and will remain on the SDN list. All his property and share ownership, including legal entities in which its share is 50% or more, will remain blocked,” the message reads.
The businessman does not receive funds from the reduction of its stake in En +. Also he may not receive dividends on the remaining shares.
And as noted by Interfax, numerous postponements of the deadlines OFAC against companies of Oleg Deripaska accompanied by comments of the American regulator about the upcoming changes in their corporate structure made it clear: sanctions are not eternal and will be removed when the power to approve the scheme of reduction of the share that fell under sanctions businessman, and his role in the management of companies. And last on this unusually short period of two weeks — was seen as a clear allusion to the fact that the “agreement with the investigation” already “in the ointment” and is about to be announced.
But, the agreement of the administration of Donald trump with the Russian billionaire Oleg Deripaska, which allows until mid-January 2019 to lift sanctions against RUSAL, fell under the scope of the us Congress.
According to The Daily Beast, the leader of the Democrats in the Senate, Chuck Schumer has prepared a resolution on the termination of the agreement, which Deripaska has signed with the Ministry of Finance of the USA after a tense semi-annual negotiations.
Although, handing US control of his aluminium Empire, he Deripaska will remain a “black list” of the Ministry of Finance, and its property continue to be blocked, the agreement will allow “RUSAL” to recover the sale of aluminium on the world market and to avoid default on external debt.
Agreement with Deripaska, who are in the SND-list for participating in the “malicious actions,” requires explanation, said to The Daily Beast, a member of the intelligence Committee of the house of representatives Jim hymes. According to him, further steps will be discussed at the Committee level of Congress.
Resolution on termination of the lifting of sanctions prepared in the framework of the law “On combating the enemies of America” (CAASTA) enacted last summer. Under this law, Congress resolved within 30 days to block any decisions of the administration about the subjects of the sanctions list for possible downgrade pressure on Russia.
What does this mean? The answer can be seen in the January report of the world Bank about the Outlook for the global economy. The world Bank notes that the Russian economy in 2019 will grow more slowly than expected and half will lag behind the world in terms of growth. Key factors the Bank considers the situation that reinforce the “weak” successes in diversifying the economy over the last 4 years the site of the Russian Federation in global production units has not changed, 59% of exports are hydrocarbons, 10% — on metals and only 7.6% refers to products of high added value — machinery and equipment.
External factors, as noted in the Bank, also “remain mostly unfavorable”: possible extension of the sanctions and geopolitical tension is high level of uncertainty, which weighed on domestic demand.