US Treasury Extends Wind-down Period for Aluminum Producer Rusal

The US Treasury Department's Office of Foreign Assets Control has extended its "wind-down" period with sanctions-hit Russian aluminum producer Rusal until October 23, 2018, the Treasury said Monday.

"Rusal has approached us to petition for delisting. Given the impact on our partners and allies, we are issuing a general license extending the maintenance and wind-down period while we consider Rusal's petition," said Treasury Secretary Steven Mnuchin in a statement.

On April 6, the Treasury Department announced that it was implementing sanctions on various Russian individuals and companies, including Oleg Deripaska's EN+ group, Rusal's parent company.

As a result of these sanctions, Rusal is not permitted to sell material into the US and its assets under US jurisdiction are frozen. US citizens are also forbidden from dealing with sanctioned parties, and non-US persons knowingly facilitating transactions between Rusal and US entities could also face punishment.

The initial wind-down period was due to expire on June 5.

"Rusal has felt the impact of US sanctions because of its entanglement with Oleg Deripaska, but the US government is not targeting the hardworking people who depend on Rusal and its subsidiaries," Mnuchin said in the statement.