Russia's VTB Bank says no longer lending to Deripaska

Украина опубликовала расширенный список санкций против России

Russia's VTB Bank says no longer lending to Deripaska

Rusal on Thursday said Chief Executive Alexandra Bouriko and seven board members resigned in an effort to help the company escape the Trump administration's sanctions program.

The United States on May 22 gave USA customers of Russian van manufacturer GAZ more time to wind down business with the company in the latest softening of sanctions against GAZ owner Oleg Deripaska.

"Oleg Deripaska, non-executive director of the Company, has tendered his resignation as a director of the Company with effect from 25 May 2018", the company's statement said.

"Rusal has been making progress in demonstrating it will meet conditions for relief from the United States sanctions - without which it can't operate normally", said Helen Lau, a Hong Kong-based metals and mining analyst at Argonaut Securities.

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The head of Russia's second-largest banking group, VTB, has said that the bank has stopped providing new loans to tycoon Oleg Deripaska after the latest round of USA sanctions.

The US has given American customers and suppliers of the company until October 23, to wind down business, a deadline which was extended after the chaos of the initial sanctions announcement. "The company may not be able to maintain its operating performance at a certain level required to service and repay its indebtedness and that may result in current creditors accelerating repayment". The fall in sales and additional costs in rearranging the company's supply chain, "may". The sanctions have in effect locked the group out of the U.S. dollar economy and the company has...

"Opportunities to provide financing to the group on commercially reasonable terms will be very limited", it said.

The US government has previously made clear that sanctions on Rusal could be lifted depending on how much Deripaska is willing to distance himself from the company.

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