Russia's Rusal plunges on United States sanctions

Rusal shares plunge sharply on U.S. sanctions

Rusal shares plunge sharply on U.S. sanctions Oleg Deripaska

CEO of Glencore Glasenberg attends the St. Petersburg International Economic Forum Thomson Reuters MOSCOW (Reuters) - Rusal's dollar bonds slumped to record lows and a prominent board member resigned on Tuesday in the latest aftershocks from the Russian aluminum giant's inclusion last week on a new US sanctions list. "The Department is also in close and regular contact with its enterprise agencies, IDA Ireland and Enterprise Ireland, who are monitoring this evolving situation", she said.

Companies owned by Russian billionaire Oleg Deripaska warned that United States sanctions against his Russian aluminium and energy empire would have a "materially adverse impact" on future business prospects and could result in technical credit defaults.

The company could not be reached for comment.

The company made this statement amid a sharp plunge in its shares: they fell by more than 40% on the stock exchange in Hong Kong.

Rusal's shares in Hong Kong have slumped by half since the sanctions were imposed on Friday and gave up another 1.9 percent on Wednesday.

The US Treasury said the sanctions were linked to Russia's actions in Crimea, Syria and Ukraine and its interference in western democracies.

Glencore CEO Ivan Glasenberg also resigned from his role as a Rusal director.

As a major Rusal shareholder, Glencore added it was carefully considering how to protect its business and said it was pulling back from earlier plans to swap its 8.75 percent of Rusal for Global Depository Receipts in En+. The Swiss commodities giant said Tuesday it was committed to complying with sanctions and mitigating risks to its business from them.

At the same time, the list of companies includes several structures related to Oleg Deripaska - agroholding Kuban, Eurosibenergo, Rusal, Russian Machines and GAZ Group, investment company B-Finance, holdings Basic Element and En+. Any assets the seven have under United States jurisdiction have been frozen and U.S. nationals are forbidden from doing business with them.

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