Sanctions-hit Rusal soars 9 per cent in Hong Kong after Russian oligarch Deripaska cedes control
Aluminium prices surged last month amid fears the US sanctions will hit the global supply chain, but prices have since retreated after the US softened its stance on the penalties
Rusal, which produces about 7 per cent of the world’s aluminium, saw its Hong Kong-listed shares surge as much as 9 per cent on Monday, after Russian billionaire Oleg Deripaska said he would cede control of the firm and “end his influence” on the board in a bid to avoid US sanctions.
The stock closed at 5.4 per cent at HK$1.94. It reached an intraday high of HK$2.01, up 9.2 per cent from the previous close of HK$1.84.
The surge came after Rusal announced before market open that En+, which owns Rusal, had endorsed a plan to allow Deripaska to end his control over En+ to let the company escape US penalties.
“The plan [by En+] seeks to both reduce Mr Deripaska’s shareholding in En+ to below 50 per cent and to end his influence over the board of directors of En+ through the appointment of a majority of independent directors,” Rusal said.
Deripaska has also resigned as a director of En+ and given an undertaking not to seek re-election as a director of Rusal at the forthcoming annual general meeting.
