Report: Sanctions deal actually boosts Russian oligarch Oleg Deripaska

(Image credit: Olga Maltseva/AFP/Getty Images)

last updated 22 January 2019

The sanctions agreement reached by the Trump administration and Russian oligarch Oleg Deripaska actually appears to benefit Deripaska, The New York Times reports.

Last April, the Treasury Department announced sanctions against Deripaska — a onetime business associate of former Trump campaign chairman Paul Manafort — and three of his companies, as well as six other Russian oligarchs and their companies; Treasury Secretary Steven Mnuchin said the sanctions were in response to "a range of malign activity around the globe." In December, Mnuchin said the Treasury Department reached an agreement to lift the sanctions on three companies controlled by Deripaska: The aluminum company Rusal; EN+, the holding company that owns Rusal; and EuroSibEnergo.

As part of the deal, Mnuchin said, the companies had to "significantly diminish Deripaska's ownership and sever his control." But the Times reviewed a confidential document, signed by a Treasury official and representatives of Deripaska's companies, which shows that under the deal, he will have the opportunity to wipe out hundreds of millions of dollars in debt by transferring some of his shares to the Russian government-owned bank VTB, which has lent him a substantial amount of money. At the same time, Deripaska's allies — who are also close to the Kremlin — will still have major stakes in his companies.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

In a statement, the Treasury Department said Deripaska's companies have "committed to provide Treasury with an unprecedented level of transparency into their dealings to ensure that Deripaska does not reassert control." The Times reports that privately, Deripaska associates are happy with the agreement, and after the deal was announced, share prices of Rusal and EN+ went up, boosting Deripaska's portfolios. For more of the details in the agreement, visit The New York Times.

Explore More

Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.