En+ Group PLC said Jan. 18 that three individuals were identified who could exercise voting rights attached to "certain shares of the company," with the U.S. Department of Treasury set to lift sanctions against Russian billionaire Oleg Deripaska's energy and aluminum businesses.
En+ stock closed 11.2% higher on the Moscow Exchange at 553.90 Russian rubles the same day, while United Co. Rusal PLC's share price increased by 2.23% to 31.36 rubles.
The Russian energy and power conglomerate named David Knower, David Crane and D.J. Baker as potential controllers of certain shares but gave no further information about them.
The trio could form a voting trust to help Deripaska reduce his holding in line with requirements outlined by the U.S. Office of Foreign Assets Control in December 2018, which included the allocating rights above 35% to a trust.
The U.S. Treasury is set to lift sanctions against En+, Rusal and EuroSibEnergo PLC pending significant restructuring to reduce Kremlin-associate Deripaska's control and ownership, which must fall "well below 50%" in En+, to 44.95% from approximately 70%.
The Office of Foreign Assets Control on Dec. 19, 2018, announced its intention to lift sanctions against the three Russian companies within 30 days but has faced opposition from Democratic leaders and some Republicans who defied the Trump administration to vote with Democrats.
Deripaska's deal with the U.S. Treasury includes Anglo-Swiss metals and mining giant Glencore PLC, which will exchange its shares in Rusal for an interest in En+, and Russian state-owned VTB Bank PJSC, which will take a block guaranteed in relation to outstanding obligations.
In addition, the Russian businessman will donate a tranche of shares to a charitable foundation. He will remain blacklisted by Washington.
As of Jan. 17, US$1 was equivalent to 66.47 Russian rubles.