The U.S. Treasury Department ("Treasury") Office of Foreign Assets Control ("OFAC") lifted sanctions imposed on En+ Group plc, UC Rusal plc and JSC EuroSibEnergo (collectively, the "companies").
Under the terms of their removal from OFAC's Specially Designated Nationals and Blocked Persons List ("SDN List"), the companies have reduced sanctioned Russian oligarch Oleg Deripaska's "direct and indirect shareholding stake in these companies and severed his control." OFAC stated that the majority of the board of directors for En+ Group plc and UC Rusal plc will be independent directors that have no business, professional or "family ties to Deripaska or any other [Specially Designated National], and that independent U.S. persons vote a significant bloc of the shares of En+." Further, the companies agreed to undertake a variety of reporting requirements in an effort to provide more transparency.
Commentary / James Treanor
Recent events on Capitol Hill - including efforts by Congressional Democrats and some Republicans to prevent these sanctions from being lifted - underscore the need for vigilance and caution when it comes to sanctions against Russia. (See here for a more detailed discussion of OFAC's December 19 notice to Congress of its intent to lift sanctions on three Deripaska-related companies.) While Congressional efforts to prevent the lifting of sanctions ultimately failed, the debate made clear that bipartisan support exists for the maintenance of strong sanctions on Russia, and lawmakers have demonstrated their willingness to exercise oversight in this area.
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