Rusal drops on United States sanctions

Rusal drops on United States sanctions

Rusal drops on United States sanctions

Russian aluminum giant Rusal reported a possible technical default on certain types of debt obligations due to the introduction of new U.S. sanctions. The company, also listed in Moscow, is the biggest aluminum maker outside China, and the measures could hurt access to financial markets and disrupt shipments to world buyers. His company Rusal was hit hard on the markets after he was named on the US sanctions blacklist.

Aluminum stocks rose as giant Russian producer United Company Rusal warned on Monday that Trump administration sanctions could land the company in technical default of debt obligations. Any assets the seven have under United States jurisdiction have been frozen and U.S. nationals are forbidden from doing business with them.

The sanctions could also threaten a tentative revival in Russia's economy, which had only just started to recover from those imposed in response to its annexation of Crimea in 2014.

The Kremlin on Monday slammed the latest round of sanctions. The state-controlled bank is seen as a barometer for the wider Russian economy.

The sanctions also hit Norilsk Nickel, whose shares were down 16 percent. Shares in Russian steelmaker Evraz were the biggest fallers on the FTSE 100 in London, closing 14.4% lower.

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Washington has accused Deripaska of operating for the Russian government. The company floated its shares in London in November, raising $1bn (£710m), despite concerns that it could face sanctions related to Deripaska's ties to Putin. He features in Robert Mueller's investigation into Russian meddling in the USA election because of his ties to Paul Manafort, Donald Trump's former campaign chairman. "The situation is pretty egregious from the point of view of legality, it tramples on all kinds of norms, and so a thorough analysis is necessary", he said.

Moscow said it was looking to support Russian companies hit by the sanctions. It was mentioned that the US sanctions are highly likely to will have a negative impact on the business of the company and its development.

"The US list may not be the final list and it feels like there will be more sanctions, so investors do not know which, if any, stocks to hold", said John Meyer, mining analyst at SP Angel.

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