En+ Group PLC said June 4 that President and Executive Director Maxim Sokov resigned as of June 1 as part of measures to avoid U.S. sanctions.
The resignation is part of the company's plan, announced in late April, that includes appointing a majority of new independent directors to the board, the company said June 4. Sokov took over as president after Oleg Deripaska relinquished the position earlier this year. Sokov said the company faces "unprecedented and unforeseen challenges," and the decision to step down was "for the sake of its future prosperity."
The move comes shortly after the U.S. Treasury Department granted Deripaska-related companies until Aug. 5 to comply with measures to lift the sanctions.
Sokov also recently resigned from United Co. Rusal PLC.
The Treasury Department's Office of Foreign Assets Control outlined terms for the relief of sanctions against Rusal and said the sanctions could be lifted if Deripaska relinquished control of the company.
In late April, Deripaska agreed in principle to reduce his stake in EN+ to below 50% from 53.85% and to step down from the board in a bid to lift the sanctions.
The embattled group hired Rothschild to reduce Deripaska's stake to below 50%, London's Financial Times reported June 4, citing people with knowledge of the decision.
Regarding the new appointments envisioned under the Barker plan, En+ Chairman Gregory Barker said, "This recruitment process is well underway, and I expect to be able to confirm the proposed candidates that we will be submitting to OFAC soon."
The Financial Times added that New York-based recruitment company Russell Reynolds is sourcing candidates for the independent board positions.
