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Rusal CEO, half of board members resign in response to US sanctions

United Co. Rusal PLC said May 24 that CEO Alexandra Bouriko and half of its board members have resigned, as part of efforts to protect the company from U.S. sanctions imposed in April.

Bouriko's resignation took effect on May 23 and the board has appointed Evgeny Nikitin, head of the company's aluminum division, as acting CEO.

Executive directors Vladislav Soloviev and Siegfried Wolf, as well as five non-executive directors Maxim Sokov, Dmitry Afanasiev, Gulzhan Moldazhanova, Olga Mashkovskaya and Ekaterina Nikitina, have resigned as directors, with effect from June 28. The company has 14 board members, including two executive directors, seven non-executive directors and five independent non-executive directors, according to a list of board members issued by the company in April.

The resignations came after Oleg Deripaska stepped down as a director at En+ Group PLC but remained on the Rusal board as a non-executive director. The company and its controlling shareholder En+ Group were added to a list of 14 Russian companies and 24 individuals sanctioned by the U.S. Treasury Department for profiting from Russia's "malign activity around the globe" in April.

According to a separate statement issued on the same date, Rusal warned that it may not be able to maintain operating performance to service and repay debts due to the sanctions, and as a result current creditors may accelerate repayment.

Some financial institutions have limited processing of payments for the company and many counterparties have said they would discontinue any existing contracts after Oct. 23 unless sanctions are lifted or a new license is granted by the Office of Foreign Assets Control, the company said.

The company has reportedly restarted aluminum shipments to some customers in the week of May 14 after U.S. government extended the deadline for companies to wind down contracts with the Russian producer to Oct. 23 from June 5.