United Co. Rusal PLC said Aug. 17 that its board has approved the start of a preparatory process to redomicile the company from the island of Jersey to Russia.
The decision arose from the introduction of new Russian laws regarding international companies and special administrative regions that became effective Aug. 3.
Earlier, it was reported that London-listed En+ Group PLC, which controls Rusal, is considering a move to Russia's newly created offshore tax havens amid U.S. sanctions against the company.
The proposed relocation would allow En+ to benefit from Russian legislation that grants special tax benefits, including zero taxes on profits received through dividends, to companies based in two new special administrative regions — the Russky Island in the Sea of Japan and on Oktyabrsky, an island on a river in the Russian exclave of Kaliningrad.
Earlier this month, Oleg Deripaska's En+ submitted the final version of its proposal to the U.S. Treasury's Office of Foreign Assets Control as it looks to be removed from the U.S. sanctions list.
Deripaska has previously stepped down from the boards of both En+ and Rusal, with both companies electing a new board of directors in a bid to ease sanctions.
Widely rocked by sanctions, the aluminum producer recently shut down production at the Nadvoitsky aluminum smelter, noting that it could be forced to shut down more of its output if sanctions are not lifted. In the second quarter, the aluminum producer's profit fell by 25.0% on a quarterly basis to US$408 million.