US Treasury pushes ahead with lifting of Deripaska-related sanctions, despite opposition

US Treasury Secretary Steven Mnuchin has issued a statement on the status of the sanctioned Russian oligarch Oleg Deripaska and the three companies tied to him: RUSAL, EN+, and EuroSibEnergo (‘ESE’). The statement, issued on 10 January, endorsed the sentiments of the letter sent to Congress by Treasury’s Office of Foreign Assets Control (‘OFAC’) on 19 December, stating that sanctions on the companies would be terminated in 30 days. Mnunchin confirmed that whilst Deripaska will ‘remain sanctioned, his property and interests remain blocked, and any companies he controls are also sanctioned’ the sanctions on EN+, RUSAL and ESE will be lifted.

‘En+, Rusal, and ESE were designated for sanctions solely because they were majority-owned or controlled by Deripaska,’ he said. ‘These entities are undergoing significant restructuring and governance changes that sever Deripaska’s control and significantly diminish his ownership.’ The sanctioned companies have agreed to provide the US Treasury ‘an unprecedented level of transparency into their dealings to ensure that Deripaska does not reassert control.’

Mnuchin’s statement took place ahead of a bipartisan, classified briefing for members of the House of Representatives to defend the decision. Treasury faces opposition in Congress to the lifting of sanctions:  following the briefing House of Representatives Majority Leader Steny Hoyer announced a resolution to prevent the move, to be voted upon on 17 January. A similar motion failed to pass in the Senate.

‘Today, I am introducing a resolution to prevent the Treasury Department from lifting sanctions on businesses controlled by Oleg Deripaska, a Russian oligarch who has been sanctioned for his close relationship to President Putin and activities aimed at harming the interests of the United States,’ said Hoyer. ‘Mr. Deripaska has been key to much of the malign activities Russia directs against the United States, and the Congress must protect the American people against foreign interference and corruption.’

For the US Treasury press release see here:
https://home.treasury.gov/news/press-releases/sm585