Opposition Spokesman on Mining Phillip Paulwell has welcomed news that US sanctions on Windalco Alumina Plant's parent company, UC Rusal, are to be lifted in January. This follows reports that the United States Treasury Department says it will scrap sanctions on Russian oligarch Oleg Deripaska’s energy enterprises after he said he would relinquish control of the firms.
Paulwell, a former energy minister, said U.S. banks which were hesitant to do business with Windalco out of fear of being penalised, should no longer have a problem engaging with the entity.
UC Rusal, a Russian based Aluminium (RUSAL) company owns 93 percent of Windalco a major producer of aluninum in Jamaica, employing some 12 hundred persons. Windalco operates two plants, at Ewarton in St Catherine and Kirkvine in Manchester.
The U.S. Treasury announced it will lift sanctions on UC Rusal after the company indicated that it will restructure to reduce the amount of its shares owned by its former Chairman Oleg Deripaska.
Following the announcement, Rusal shares rose by 26.8 per cent Thursday to their highest level since April, when the sanctions were unveiled.Deripaska’s slice of En+ is due to fall from around 70 per cent to below 45 per cent under restructuring that could involve a “charitable” donation of shares.
En+, a London-listed energy provider, along with Rusal, a Hong Kong-listed aluminium group, and power firm EuroSibEnergo are to be free of Washington’s sanctions by January.
In April, the U.S. Treasury imposed sanctions on Rusal's Chairman and his companies, prompting turmoil in global aluminum markets.
UC Rusal is the world's second largest aluminum producer.
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