Rusal is a Russian conglomerate and the second largest aluminum company in the world. The company was previously sanctioned for being owned and controlled by Mr. Oleg Deripaska in what is called the Barker Plan. In January, OFAC lifted the sanctions on Rusal, leading to a more positive outlook for the international aluminum market. The company is seeing growth, and it intends to bring sales back to pre-sanction levels.
Deripaska’s ownership of Rusal was substantially reduced, and certain concessions were made to remove Rusal from the sanctions lists. After the removal of sanctions on Rusal, there has been a positive outlook for the international aluminum market. The company is seeing growth, and it intends to bring sales back to its pre-sanction levels.
Why Were the US Sanctions Lifted in January?
US sanctions were lifted because Oleg Deripaska’s ownership of Rusal was substantially reduced. Additionally, other concessions were made in an agreement known as the Barker Plan.
The decision to lift Rusal sanctions was contentious due to the involvement of the Russian government in these companies as well as the current controversies about Russia’s interference in US politics. In the end, OFAC decided to negotiate a resolution, and through the Barker Plan, Deripaska reduced his stake in several companies that were subject to sanctions. Rusal, En+, and other previously Deripaska-owned companies can now continue to engage in business as usual.
Significance of the Rusal Sanctions and Barker Plan
The designation of Oleg Deripaska’s companies and subsequent sanctions relief shows that OFAC can have a powerful impact on world markets. As this event demonstrates, targeted sanctions can be an effective way to make companies change their behavior. As a direct result of the sanctions on Rusal, En+, and others, the companies came to the table and negotiated a resolution by reducing the ownership of one individual. The removal of these sanctions works to promote further responses from other companies in the future.
Speak to an OFAC Attorney for Help With Sanctions Compliance
If you do business with OFAC designated individuals or entities, you should consult with a knowledgeable sanctions lawyer about your options. An attorney could help you apply for necessary permits or licenses to ensure you comply with OFAC restrictions. An experienced OFAC lawyer could also review your business’ sanctions compliance program to help avoid future violations. Call today to schedule a consultation.