Date
23 October 2018
Russian magnate Oleg Deripaska is reported to be preparing to relinquish direct operational control of aluminum giant Rusal and energy firm En+. Photo: Reuters
Russian magnate Oleg Deripaska is reported to be preparing to relinquish direct operational control of aluminum giant Rusal and energy firm En+. Photo: Reuters

Russian tycoon Deripaska to quit roles at Rusal, En+: report

Russian billionaire Oleg Deripaska plans to step down from his roles at aluminum giant Rusal and energy firm En+ Group, Reuters reports, citing sources familiar with the matter.

Deripaska has decided to relinquish direct operational control in the two companies because En+ became a publicly-listed company after its share sale in November, a source was quoted as saying.

The boards of En+ and Rusal will consider the management changes at their meetings on Feb. 22, according to the report.

Deripaska currently serves as president at both the Russian firms. 

The change comes less than a month after the inclusion of Deripaska and dozens of Russian billionaires on a US government list of Russian oligarchs.

While it is not a sanctions list, Western banks may be reluctant to deal with Russian companies whose owners are on the list, Reuters noted.

En+ owns assets in metals and energy, including a 48 percent stake in Hong Kong-listed aluminum firm Rusal, which is a big consumer of hydroelectricity produced by En+’s power companies.

En+ has invited international banks to pitch for the sale of US$1 billion of shares in the company, three sources told Reuters last week.

However, the inclusion of Deripaska on the US list is making some American banks who worked with En+ on its IPO in November wary about participating this time, one of the sources said.

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RC

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